Ghana will remedy credit card debt disaster without having IMF support, finance minister claims

ACCRA, May possibly twelve (Reuters) – Ghana is fully commited to running its credit card debt without having aid from the Worldwide Financial Fund (IMF), Finance Minister Ken Ofori-Atta explained, expressing his self esteem that federal government actions had been transferring the region in the ideal way.

Ghana’s complete community credit card debt, which stood at about seventy seven% of its gross domestic item at the close of 2021, in accordance to federal government facts, has pushed one particular of West Africa’s biggest economies to the brink of disaster.

The federal government in March introduced a raft of paying cuts to deal with inflation, minimize the community deficit, restore a depreciating area forex and reassure spooked traders. examine additional

But it has regularly refused to check with the IMF for support.

“We have fully commited to not heading again to the fund since… the fund is aware we are [moving] in the ideal way,” Ofori-Atta explained at a media convention in the cash Accra.

“It can be about validating the software we have in location and locating other strategies of managing our credit card debt.”

The gold, oil and cocoa producer noticed purchaser inflation increase to an eighteen-yr history of practically 24% in April irrespective of initiatives to consist of cost hikes and spur restoration.

Ofori-Atta explained the precedence would be to remedy the country’s domestic credit card debt, which has desire costs that are 3 to 4 moments greater than overseas credit card debt.

“We want to choose ourselves what composition would be helpful to us,” he additional.

The central financial institution in March lifted its most important lending amount by a history 250 foundation details and is anticipated to evaluate this at a future Financial Plan Committee conference on May possibly 23. examine additional

Ofori-Atta explained an additional desire amount hike would be a “knee jerk response” to “imported inflation”, noting that price ranges experienced ongoing to raise given that the March raise.

“We want to determine out an technique that in a way presents us fiscal place,” he explained.

Ghana’s credit score scores have been downgraded in excess of considerations about the government’s capability to go laws to increase revenues.

There has been intense opposition to a tax on digital payments accepted in April and offered as a panacea to monetary woes, with critics indicating it will unfairly impression reduced-cash flow men and women and compact enterprise proprietors. examine additional

Reporting by Cooper Inveen Crafting by Sofia Christensen
Modifying by James Macharia Chege, Alexandra Hudson

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