Imf tells Ghana to focus on fiscal consolidation
Ghana must continue with her prudent financial measures to reduce public debt and stabilise the economy for accelerated poverty reduction, International Monetary Fund (IMF) Director of the African Department, Ms. Antoinette Sayeh said on Monday.
Addressing a press conference at the end of her visit to Ghana, Ms Sayeh said despite the healthy economy boosted by high cocoa and gold prices, the country still had to work on fiscal consolidation to reduce poverty.
She said although the growth prospects of between 4.5 and five per cent for 2009 and 2010 would be lower, it still held good prospects for poverty reduction.
Ms Sayeh underscored the commitment of the IMF to countries in Sub-Saharan Africa, saying the IMF was now offering more resources than in the recent past.
She lauded the significant progress Ghana made in debt recovery and expressed the hope that with the partnership of the IMF, Ghana could tackle most of her problems.
Ms Sayeh said IMF in partnership with the World Bank was working on how to ensure that the domestic public debt did not overwhelm growth in member countries.
She hinted on a moratorium on outstanding debt repayment by 2011 to allow member countries to improve on growth.