The government is set to commence talks with the International Monetary Fund (IMF) for a bailout following severe challenges to Ghana’s economy.

This was announced in a statement issued by the Information Ministry today, Friday, July 1, 2022.

“The President of the Republic, Nana Addo Dankwa Akufo-Addo, has authorized Finance Minister Ken Ofori-Atta to commence formal engagements with the International Monetary Fund (IMF), inviting the Fund to support an economic program put together by the Government of Ghana.”

“This follows a telephone conversation between the President and the IMF Managing Director, Miss Kristalina Georgievs, conveying Ghana’s decision to engage with the Fund,” the statement noted.

The Information Ministry explained that this decision was taken at a meeting on June 30, 2022.

“The engagement with the IMF will seek to provide a balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the Covid-19 pandemic and, recently, the Russia Ukraine crises.”

Ghana’s economy is currently in dire straits with worsening public debt, rising inflation, fuel prices and cedi depreciation among others.

Recent data released by the Bank of Ghana put Ghana’s total public debt stock, as of March 2022, at US$ 55.1 billion (GH¢391.9 billion).

In dollar terms, the debt dropped by over $3 billion in the first 3 months of the year, from $58.4 billion in January to $55.1 billion in March.

Several efforts by the government including the introduction of the Electronic Transfer Levy (E-levy) to shore up enough revenue to salvage the worsening economic conditions haven’t yielded any positive results.

The Electronic Transfer Levy (e-levy) introduced by the government to generate additional cash for the government is raking in only 10% of the estimated revenue.