The IMF announced this after concluding their Article IV consultation with
The Executive Board of Directors of the IMF mentioned that the present situation makes
According to them, achieving the 2014 fiscal deficit target will be challenging, in light of high interest rates, a depreciating currency, and a possible growth slowdown.
They therefore urged the authorities to take additional short-term measures to reduce the fiscal and external imbalances.
They encouraged the government to translate its policy commitments quickly into specific and time-bound action plans to achieve significant and durable consolidation.
In light of current imbalances, the directors recommended a more ambitious medium-term consolidation path to stabilize public debt and debt service at sustainable levels.
While the risk of debt distress remains moderate, they expressed concern about the high debt service-to-revenue ratio.
A stronger medium-term adjustment could set off a virtuous cycle of lower fiscal deficits and falling interest rates, creating space for social and infrastructure spending and crowding-in of private sector activity.
The Bank of
The Directors of IMF welcomed the increment.
The board suggested that further tightening may be needed, in combination with fiscal consolidation, to steer inflation back into the target range of a single digit.
Government's public debt level as the end of last year was over
The directors of the fund have stressed that the Bank of
In February, the central bank introduced a set of new of foreign exchange rules to salvage the Cedi which had been declining against major foreign currencies. It has up to date depreciated about 20 percent.
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