Recent increase in policy rate to tame inflation; quarterly utility tariffs to help reduce energy arrears - IMF

The International Monetary Fund (IMF) has announced that recent policy rate increases will help reduce inflation.

After its mission to Ghana, the IMF stated that Ghana is dedicated to completing its public debt restructuring. This effort aims to restore sustainability.

The IMF noted that the Memorandum of Understanding (MoU) with Ghana’s Official Creditors Committee (OCC) is finalizing bilateral agreements. These agreements will implement the MoU under the G20 Common framework.

Additionally, Ghana's authorities are working in good faith with commercial creditors. They aim for a debt treatment agreement that aligns with program parameters and principles of comparability.

The mission discussed a broad structural reform program with Ghanaian authorities. The focus is on improving governance, transparency, and management of State-Owned Enterprises in gold, cocoa, and energy sectors.

The IMF also mentioned that resuming quarterly electricity tariff adjustments will help address energy sector shortfalls. This approach aims to prevent new arrears from accumulating.

Finally, the IMF concluded that authorities are committed to strengthening public banks as recapitalization efforts continue.