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The Governor of the Bank of Ghana (BoG), Dr. Ernest Addison has advised state authorities to begin looking at criteria set out for the International Monetary Fund (IMF) third review after the successful second review.
He cautioned that any attempt to slow down in meeting benchmarks could derail the efforts and affect the third review which is crucial since it is closer to the end of the year.
Dr. Addison made the call during a joint press conference with the Ministry of Finance and the IMF.
“With a successful conclusion of the second review, we need to begin to think of the third review of the programme and beyond and take advantage of the reform momentum”, he said.
He stated that steadfastness and commitment will be needed from now till the end of the year to see through all the structural reforms envisaged under the programme, including the signing of the Memorandum of Understanding between the Ministry of Finance and the Bank of Ghana on the recapitalisation of the central bank.
This, he said will strengthen the central bank’s credibility to effectively deliver on its reforms.
“I must at this point say that on a year-to-date basis (June 27), the Bank has accumulated US$917 million, ahead of the $463.8 million IMF programme targets”.
Dr. Addison pointed out that the Bank of Ghana will continue to work closely with the banks to ensure that they are well capitalised to deliver on their mandate to support growth.
“Plans to recapitalise the banks are being implemented to strengthen financial stability. Most of the banks, however, are well ahead of their recapitalisation plans and we are confident that the sector will continue to remain sound, liquid and profitable”, he said.
Touching on other macro-economic indicators, Dr. Addison observed that inflation is still high at 23.1 percent relative to the end-year target of 15±2 percent, despite the sharp improvement.
“The rest of the year will be challenging but we will remain resolute, working with the Ministry of Finance and the IMF to ensure that the improving outlook is sustained. We want to thank all stakeholders who have worked with us collaboratively to get us to this point, he assured.
source: joy fm
