Former Finance Minister Seth Terkper has expressed confidence that Ghana could successfully renegotiate its programme with the International Monetary Fund (IMF) if a new government comes into power.
His remarks support those made by the National Democratic Congress (NDC) flag bearer, John Mahama, who has stated that his administration would seek to renegotiate certain terms of the IMF programme.
Mr. Terkper highlighted the NDC’s superior record in implementing homegrown policies during its previous tenure. He emphasized that a new NDC government could leverage this track record to propose reviving several initiatives abandoned by the current government.
Among these initiatives are the strict implementation of the Government Integrated Financial Management System (GIFMIS), the Sinking Fund used for debt servicing, the Energy Sector Levy Act (ESLA) for addressing energy sector arrears, and the i-Tax system, which aims to automate tax collection and enhance domestic revenue mobilization.
Join our WhatsApp Channel for more news
READ ALSO:
- Finance Minister: We are Staying within Our Budget Limits
- Locally Produced Items Were Significantly the Main Contributors to June Inflation, GSS data shows
The former Finance Minister believes that if a future NDC government, with its proven track record, demonstrates its commitment to continuing these programs, it could successfully negotiate with the IMF to alter the terms of the current programme. Such negotiations could also unlock additional funding opportunities from the IMF and related multilateral partners, including the World Bank and the African Development Bank.
The former Finance Minister criticized the New Patriotic Party (NPP) government for abandoning several programmes that had previously ensured better economic management. He noted that the IMF is now urging the government to reinstate many of these initiatives, such as tax system automation, strict enforcement of GIFMIS, and establishing an escrow account to set aside funds for restructured debt payments.
Former President Mahama had told Reuters that if elected in December, he would attempt to renegotiate the IMF bailout terms and increase local ownership of future oil and mining projects. Mahama, who served as President from 2012 to 2016, is seen as the main challenger to the ruling party’s candidate, Vice President Mahamudu Bawumia. Mahama’s prospects are buoyed by the current economic crisis, which has contributed to the government’s declining popularity.
Meanwhile, economist and finance professor Godfred Bokpin has cautioned that Ghana may struggle to fund priority sectors of the economy after exiting the IMF programme in 2026 due to debt obligations exceeding GH¢130 billion. Renegotiating the programme terms could address these concerns and help stabilize the country’s economic outlook.
