APA – Accra (Ghana) The struggling West African nation has secured the long awaited $3 billion financial support from the International Monetary Fund (IMF), an issue which dominates the headlines of the local press on Thursday.
The Graphic reports that Ghana has secured the financial bailout from the IMF, quoting what it calls deep-throated sources.
At a meeting on Wednesday, May 17, 2023, in Washington, the Executive Board of the IMF unanimously approved Ghana’s programme over the next three years.
Graphic Business sources in Washington have said finishing touches are being made to sign off the deal and that a press release confirming the details will be released in a few hours.
Meanwhile, the IMF has announced that a virtual press conference will be held on Thursday, May 18, to provide journalists with insights into the outcomes of the Executive Board meeting concerning Ghana’s request for an Extended Credit Facility (ECF) Arrangement.
The press briefing will feature key participants including Stephane Roudet, the IMF Mission Chief for Ghana; Ken Ofori-Atta, Ghana’s Minister of Finance; Ernest Addison, Governor of the Bank of Ghana; and Tatiana Mossot, Senior Communications Officer at the IMF.
The highly anticipated press conference aims to provide clarity on the discussions held during the IMF Executive Board meeting and the decisions made regarding Ghana’s request for an Extended Credit Facility Arrangement.
The virtual format, conducted via Zoom, will enable journalists and stakeholders to engage with the panel of experts and gain a deeper understanding of the IMF’s perspective on Ghana’s economic situation and the proposed assistance.
Meanwhile the same newspaper says that the Public Utilities Regulatory Commission (PURC) has announced an 18.36% increase in tariffs for both electricity and natural gas across all consumer groups.
The decision comes after a comprehensive review conducted for the second quarter of 2023 and the new rate takes effect from June 1, 2023.
According to a statement issued by the PURC, the decision was made with the aim of striking a balance between averting prolonged power outages and their detrimental impact on jobs and livelihoods, while also minimizing the burden of rate hikes on consumers.
The implementation of the Quarterly Tariff Review Mechanism serves the purpose of closely monitoring and incorporating changes in crucial factors that determine natural gas and electricity tariffs.
The PURC in the statement identified several factors as contributors to the latest tariff adjustment, including the fluctuating Ghana Cedis/US Dollar exchange rate, inflation, the composition of electricity generation sources, and the weighted average cost of natural gas (WACOG).
In clarifying the need for this review, the PURC emphasized the importance of maintaining the true value of the cost of utility services and ensuring that utility companies neither overcharge nor undercharge consumers.
It said a failure to adequately recover costs can have adverse consequences on the companies’ ability to provide reliable services, potentially leading to electricity outages. Conversely, excessive cost recovery places an unnecessary burden on electricity consumers.
“This review has become necessary to maintain the real value of the cost of supply of the utility services and to ensure that the utility companies do not under or over-recover costs,” the statement said.
GIK/APA