Dr. Ernest Addison, the Governor of the Bank of Ghana (BoG), has emphasized the need for the International Monetary Fund (IMF) to maintain flexible support tailored to both global conditions and the specific needs of individual countries.
He stated this during the 2024 Africa Caucus Meeting with IMF Managing Director Kristalina Georgieva in Washington on October 22.
Dr. Addison highlighted the importance of maintaining high concessionality in the Poverty Reduction and Growth Trust (PRGT) while ensuring sufficient financing through various means, including potential gold sales.
He criticized the timing of resuming interest rates on PRGT funds, stating that many PRGT-eligible countries continue to face significant challenges.
He also called for collaborative efforts from the IMF and World Bank to develop resilient fiscal policies that accommodate Africa’s diverse needs, ensuring that reforms do not disproportionately impact vulnerable populations.
Furthermore, he urged the IMF to enhance technical support for African countries to strengthen institutional capacities, which are essential for addressing fiscal challenges and fostering sustainable economic growth.
The governor pointed out the severe fiscal issues faced by African nations, such as rising debt vulnerabilities and limited access to international capital markets, which have been exacerbated by recent global challenges.
He emphasized the need for a multifaceted approach combining domestic reforms with stronger international support to overcome these challenges.
Dr. Addison concluded by urging the IMF to lead in debt restructuring and relief efforts for heavily indebted countries, advocating for innovative financing solutions to address both debt vulnerabilities and climate change risks.
