Ghana’s Bailout Will Come With Increases In Taxes And Tariffs – IMF2 min read

According to Dr. Leandro Medina, IMF Resident Representative in Ghana, the $3 billion bailout comes with strict revenue generation compliance.

Speaking in an interview on Accra based Citi TV, he said these are deemed crucial components of the country’s US$ 3 billion, three-year Extended Credit Facility with the IMF.

“The revenue measures that have been passed between December and April are part of the prior actions. It’s very important to mobilize revenue. Revenue to GDP in Ghana is very low as compared to other countries. Ghana is making a huge effort to increase revenue, and this will be done mainly by increasing the tax base. What is important to say is that this is a large and front load fiscal consolidation”, he said.

The Minister of Finance, Ken Ofori-Atta in a recent interview said Ghanaians have to look forward to new economic opportunities after the bailout.

“Indeed, I think we have to move ahead, and as the good book says, we should forget the former things, we should not dwell on the past and see that new things are being done, and we are ready for that”.

Speaking at a recent press briefing organised by the International Monetary Fund, Mr Ofori-Atta, said the government will support the Fund to achieve the intended objectives of the Fund-support programme, “and the collective effort of the Ghanaian people will work through our current challenges and emerge stronger than before”.

He furthered that “greater things are ahead. We know Ghana can achieve it. We’ve been through this before, and we are ready to ensure that we set a pace that others can also follow”.