President Nana Addo Dankwa Akufo-Addo has announced government’s intentions to seek further loans from the global financial market in order to finance infrastructural projects. This decision comes after Ghana successfully secured a $3 billion financial bailout from the International Monetary Fund.
During his speech at the Qatar-Africa Economic Forum held in Doha, Mr. Akufo-Addo emphasized that while his administration is not in a hurry to seek additional international funding, it would be prudent to seize the current market opportunities and generate savings.
“We have positioned ourselves to be able to go back into the International market which had been a source of funding for us during the first three or four years of our government,” the president said, adding, “There is no rush but obviously why not take advantage of global savings, it makes a lot of sense to me. We will try as much as possible to maintain the discipline which is required and the most important requisite for a successful programme.”
The Finance Minister, Ken Ofori-Atta had earlier emphasized Ghana’s commitment to fiscal responsibility, stating that Ghana will not hastily seek to return to the international capital market for borrowing.
Speaking at a press conference on Thursday (May 18), Ofori-Atta highlighted the importance of revenue measures and prudent expenditure management in ensuring financial stability and sustainability.
He further acknowledged the revenue-enhancing measures outlined in the budget, particularly improvements at the Ghana Revenue Authority (GRA), which are expected to provide the necessary resources for the country’s progress.
“There is no rush in going back to the international capital market. Our expectation is that, by managing our expenditure and increasing our revenue, we will have the resources to address our needs.”
President Akufo-Addo further disclosed that the government will implement stringent expenditure cuts to reduce expenses in order to fulfill the requirements tied to the $3 billion financial bailout provided by the International Monetary Fund (IMF).
Mr. Akufo-Addo emphasized his government’s determination to positively transform the country’s situation and assured that every necessary action will be taken to revive the struggling economy.
“Rationalisation of our expenditure, rationalization of government expenditure is something that we have given the assurance. Domestic revenue mobilization is absolutely critical for us and already we are seeing signs.
“We have a fiscal responsibility law in Ghana that has pegged our fiscal deficit at 5 percent but already we are way above that and the sooner we can bring that to more acceptable levels the better for us.”