Former Finance Minister and Member of Parliament for Karaga, Dr. Mohammed Amin Adam, has vehemently refuted the current Finance Minister’s assertion that Ghana’s International Monetary Fund (IMF) supported programme collapsed during the tenure of the Akufo-Addo government. Dr. Adam contested this claim during parliamentary debates, citing the IMF’s own Fourth Review report as evidence that the programme remained on track and met all performance criteria by the end of 2024.
Context of the IMF Programme
Ghana has been engaged in an IMF Extended Credit Facility (ECF) programme aimed at restoring macroeconomic stability, ensuring debt sustainability, and fostering inclusive growth. The programme involves regular reviews by the IMF to assess the country’s adherence to agreed-upon economic targets and policy commitments. Successful completion of these reviews is crucial for unlocking further tranches of financial assistance and maintaining international investor confidence.
Disputing the ‘Derailment’ Narrative
Dr. Amin Adam directly challenged the Finance Minister’s use of the word ‘derailed,’ arguing it was an inaccurate characterization of the programme’s status. He pointed to specific data from the IMF’s Fourth Review document, stating that all six performance criteria were met by the end of 2024.
“Mr Speaker, in the Finance Minister’s statement, he mentioned that the IMF programme derailed under us and I want to inform them that the use of the word derail is inappropriate and not correct,” Dr. Adam stated in Parliament.
He further elaborated, referencing page 74 of the IMF’s Fourth Review report, which details the performance measures used for programme approval. According to Dr. Adam, the report confirms that Ghana satisfied all six of these critical targets.
Performance Against Indicative Targets
Beyond the strict performance criteria, the IMF programme also includes indicative targets, which are less binding but still serve as important benchmarks. Dr. Adam highlighted that out of four such indicative targets, Ghana successfully met three.
“You come to the indicative target which also has four targets and three of them were met and only one was not met. So how can someone say this is a programme that was derailed?” he questioned.
Understanding Programme Derailment
Dr. Adam explained the technical definition of programme derailment within the IMF’s framework. He emphasized that a programme is only considered derailed when a mandatory performance criterion is missed, requiring a waiver from the IMF to proceed with a review.
“If you go to the IMF lexicon of programme derailment, the IMF will tell you only when you miss a performance target that the programme will be said to be derailed because by then you have to ask for a waiver before you can pass the review,” he clarified.
Allegations of Data Manipulation
The former Finance Minister also accused the current government of attempting to manipulate public perception of the economy. He alleged that fiscal data was politically revised to create a more favorable narrative about economic performance.
“Everybody knows you did politics. You brought your voodoo figures in order to change the narrative about the fiscal outturns and you have no monopoly over that,” Dr. Adam asserted.
He maintained that the Akufo-Addo administration left behind an IMF programme that was substantially on track. Dr. Adam urged government officials to provide a more objective and balanced account of the nation’s economic situation and the status of the IMF programme.
Looking Ahead
The debate underscores the critical importance of accurate economic data and transparent reporting, especially within the context of international financial assistance programmes. As Ghana navigates its economic recovery, clarity on the performance and status of the IMF programme will be crucial for maintaining stakeholder confidence. Future reviews and official communications from both the government and the IMF will be closely watched to ascertain the true trajectory of the programme and the Ghanaian economy.
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