“Government could seek more IMF funding” – Incoming Finance Minister Ato Forson

Dr. Cassiel Ato Forson, Ghana’s Finance Minister-designate, has announced that the new Mahama administration may seek additional funding from the International Monetary Fund (IMF) under its ongoing three-year program to cushion the economy.

Speaking to reporters on Thursday ahead of an IMF team meeting in Accra, Dr. Forson emphasized the administration’s commitment to working closely with the IMF and exploring financing options with both domestic and international partners.

“We are committed to working with the IMF, but we also want to ensure that we can raise additional financing,” he stated, adding that reliance on treasury bills had proven unhelpful.

Dr. Forson, a 46-year-old chartered accountant with a doctorate in finance, highlighted plans to cut public spending to reduce inflation and eliminate wastage in government operations.

The minister-designate also indicated the administration’s aim to restart domestic bond issuance by mid-year and complete the restructuring of Ghana’s external debt, including negotiations with non-Eurobond commercial creditors.

President Mahama’s government, inheriting an economy recovering from its worst crisis in a generation, has vowed to renegotiate the IMF bailout terms while maintaining its current program. Dr. Forson reiterated the need for an overhaul of the cocoa sector, citing challenges like funding and diseased crops.

The ministerial nominations, including John Jinapor as Energy Minister and Dominic Ayine as Attorney General, await parliamentary approval where Mahama’s NDC holds a two-thirds majority.