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Zero-deficit financing law won't happen -- Osafo-Maafo

Jan 20, 2017

The Senior Minister-designate and former Finance Minister Yaw Osafo-Maafo has said government will seek to abandon the IMF requirement that says the Bank of Ghana cannot finance government’s deficit.

The incoming Minister said the move is not tenable considering the fact that successive government have struggled to even keep to the set limit of about five percent of previous year total revenue.

Last year the amended BoG Act only limited government to borrow up to five percent of previous year total revenue with the IMF wanting zero financing.

The Fund was hopeful that the next government will completely outlaw the central bank’s deficit financing but Mr. Osafo-Maafo’s comment suggest that the new government will not yield to the IMF’s requirement.

The Senior Minister-designate further suggested that certain aspects of the ongoing 3-year bailout programme will be renegotiated with the zero deficit financing being one of the likely clauses to be ousted.

 

Source: B&FT Online | Ghana

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