Ghana is working overtime, around the clock to fulfil three imperative conditions by the end of June 2023 as part of the International Monetary Fund (IMF) supported program.
The country was given conditions which surround fiscal operations, financial sector stability, and energy sector reforms – and similar terms by the end of September 2023 which is needed to unlock the first review of the Extended Credit Facility arrangement in November 2023 and receiving subsequent tranche of another US$600 million each after the semi-annual reviews are successfully concluded.
The primary condition includes the conduction of a comprehensive stock-taking of payables across government agencies, devising a clearance plan, and implementing structural reforms to prevent future arrears.
Also, the aim of the deployed tranche is to bring about clarity on outstanding payments, ensure timely clearance and integrate commitment controls with the Government Integrated Financial Management Information System GIFMIS. To promote fiscal discipline, sanctions under the Public Financial Management (PFM) act will be enforced alongside mechanisms to monitor expenditure beyond budgetary allocations.
Experts have indicated that a strategy to prevent arrears’ build up will be formulated by the end of June, emphasising procurement prioritisation for approved project and purchases.