Structural reforms: Steadfastness & commitment will be needed from now till end of the year – Addison

Governor of the Bank of Ghana (BoG) Dr Ernest Addison has said that with a successful conclusion of the second review, authorities will need to begin to think of the third review of the programme and beyond and take advantage of the reform momentum.

He says steadfastness and commitment will be needed from now till the end of the year to see through all the structural reforms envisaged under the programme, including the signing of the Memorandum of Understanding between the Ministry of Finance and the Bank of Ghana on the recapitalisation of the central bank.

This, he said,  will strengthen the central bank’s credibility to effectively deliver on its reforms.

Recapitalisation of Bank of Ghana will strengthen our credibility to deliver on reforms – Governor

“I must at this point say that on a year-to-date basis (June 27), the Bank has accumulated US$917 million, ahead of the $463.8 million IMF programme targets. The Bank of Ghana will continue to work closely with the banks to ensure that they are well capitalised to deliver on their mandate to support growth. Plans to recapitalise the banks are being implemented to strengthen financial stability.

“Most of the banks, however, are well ahead of their recapitalisation plans and we are confident that the sector will continue to remain sound, liquid and profitable,” Dr Addison said at the joint Ministry of Finance, International Monetary Fund (IMF) and BoG press conference on Monday July 1.

To conclude, he added “inflation is still high at 23.1 percent relative to our end-year target of 15±2 percent, despite the sharp improvement. The rest of the year will be challenging
but we will remain resolute, working with the Ministry of Finance and the IMF to
ensure that the improving outlook is sustained.

“We want to thank all stakeholders who have worked with us collaboratively to get
us to this point.”