The IMF also advised the establishment of financial benchmarks, specifically a 55% net present value to GDP ratio and a cap of 18% on debt service as a proportion of government revenues.

Kristalina Georgieva, the IMF’s Managing Director, in an interview on Citi TV’s The Point of View with Bernard Avle, also advocated for the creation of a fiscal council in Ghana.

The council, she opined would consist of independent individuals who could oppose unnecessary expenditure in the country when necessary.

Georgieva stressed the importance of adhering to these financial anchors to stabilize Ghana’s fiscal situation.

She suggested that the fiscal council would play a crucial role in ensuring financial stability and preventing fluctuations in spending.

“We need to have anchors and then stick to them. For Ghana, what we are proposing is 55% net present value debt to GDP. And 18% max for the share of debt service into government revenues. Anchor your situation in a clear stable manner.

“We also recommend Ghana takes a very serious look at how the fiscal situation in the future can be stable and so we don’t go up and down again. We are recommending fiscal council, reputable people, independent people able to say objectively this line of spending yes and this one no.”