The Chief Executive Officer of Dalex Finance, , has warned that Ghana could face renewed fiscal pressure after exiting the IMF-supported bailout programme.
Speaking on The Big Issue, he said government could come under “a horrendous amount of pressure” to increase spending now that the IMF’s Extended Credit Facility (ECF) programme has ended.
According to him, Ghana’s decision to maintain a Policy Coordination Instrument (PCI) arrangement with the IMF suggests authorities still see value in IMF oversight to help maintain fiscal discipline, investor confidence and favourable ratings from international agencies.
Mr Jackson argued that the IMF’s continued presence in the background could help government resist excessive spending pressures while improving confidence among investors and reducing borrowing costs.
Government recently announced the successful completion of the IMF bailout programme and said Ghana would transition to a non-financing PCI arrangement focused on policy coordination and technical support.
