The International Monetary Fund (IMF) has announced it has received a formal request from Ghana to initiate discussions on an economic programme that could be supported by the IMF.

The Deputy Managing Director of the IMF, Min Zhu in a statement said: “The Fund stands ready to help Ghana address the current economic challenges it is facing.”

“An IMF team will be sent to Ghana in early September to initiate discussions on a programme,” he added.

Last week, the government announced it will be seeking a bailout from the IMF to help stabilize Ghana’s economy specifically, to stabilize the cedi and reduce the fiscal deficit.

This announcement was met with mixed reactions by the general public as some believed it is a clear indication of government’s gross mismanagement of the economy.

Industry players have indicated an IMF bailout will burden Ghanaians with more economic hardships as stringent measures would have to be instituted to salvage the economy.

But the President, John Mahama explained that his government decided to open discussions with the IMF not because of the failure of government’s own home grown solutions.

According to him, Ghana needs the IMF bailout for policy credibility and confidence from the international financial institutions, capital markets and investors for the measures being implemented to restore economic stability and growth.

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