Latest news with #JulieKozack
Business Insider
13-06-2025
- Business
- Business Insider
IMF to consider revising Ghana's programme targets after cedi appreciation
The International Monetary Fund (IMF) has indicated that the Ghana cedi's strong appreciation against the US dollar in the first half of 2025 may necessitate adjustments to some of the targets outlined in its ongoing programme with Ghana. Ghana achieved its debt-to-GDP target of 55% three years ahead of schedule, attributed to the strengthened currency. The cedi appreciated over 40% against the US dollar in 2025, positively affecting national debt and economic metrics. Ghana surpassed its IMF international reserves target, reaching GH¢10.6 billion by April 2025. IMF Director of Communications, Julie Kozack, made the comments during a press briefing in Washington, D.C., highlighting that future reviews of Ghana's economic programme will take into account current financial and macroeconomic developments. 'As we look at the programme, we look at all of these developments, including, of course, developments in the exchange rate,' she noted. She further explained that exchange rate fluctuations would be evaluated during subsequent reviews to ensure that the programme's goals remain 'appropriate and achievable.' Programme goals: stability, sustainability and growth Ghana's IMF-supported economic reform, backed by the Extended Credit Facility, revolves around three primary objectives: restoring macroeconomic stability, ensuring long-term debt sustainability, and laying the foundation for robust and inclusive growth. One of the key benchmarks is to reduce Ghana's debt-to-GDP ratio to 55% by the end of 2028. Recent data from the Bank of Ghana indicates that as of April 2025, this target has already been met — significantly ahead of schedule — with the debt-to-GDP ratio now standing at 55%. This achievement is largely attributed to the cedi's steep appreciation against the dollar in 2025, which has positively impacted the country's debt profile. Cedi strengthens by over 40% in 2025 Commercial bank data reveals that the Ghanaian cedi has appreciated by more than 40% against the US dollar since the beginning of the year. As of the end of April 2025, the cedi was trading at GH¢10.26 to the dollar, according to Bank of Ghana figures. President John Mahama, speaking at a recent African Development Bank event in Côte d'Ivoire, disclosed that the currency's appreciation has helped reduce Ghana's debt stock by approximately GH¢150 billion. He further noted in another engagement that the real exchange rate range of the cedi lies between GH¢10 and GH¢12 to the dollar. IMF targets for international reserves also surpassed Ghana has also exceeded the international reserves target set under the IMF programme. By the end of April 2025, the country's reserves stood at GH¢10.6 billion — the equivalent of 4.7 months of import cover. This is significantly above the threshold established in the IMF agreement ahead of its scheduled completion. Next IMF board review set for July 2025 Julie Kozack confirmed that the IMF Executive Board is expected to convene in the first week of July 2025 to assess Ghana's progress under the ongoing programme. 'Upon approval by the Executive Board, Ghana would be scheduled to receive about US$370 million, bringing total support under the External Credit Facility to US$2.4 billion since May 2023,' she stated. Ghana to exit IMF programme in 2026
Express Tribune
13-06-2025
- Business
- Express Tribune
IMF positive after trade deals, tariff cuts
The International Monetary Fund said on Thursday that its next global growth forecast in July will take into account both positive and negative trade developments but declined to predict a tariff-driven GDP downgrade similar to that released by the World Bank this week. IMF spokesperson Julie Kozack said that since the last release of the Fund's World Economic Outlook in April, there have been some positive developments that could support improved economic activity, including a major tariff reduction between the US and China and an initial trade deal between the US and Britain. "So taken together such announcements combined with the April 9 pause on the high level of tariffs, these could support activity relative to the forecast that we had in April," Kozack told a regular IMF news briefing. "But nonetheless, we do have an outlook for the global economy that remains subject to heightened uncertainty, especially as trade negotiations continue."
Reuters
12-06-2025
- Business
- Reuters
IMF welcomes Argentina reform steps ahead of end-June visit
LONDON, June 12 (Reuters) - The International Monetary Fund said on Thursday that it welcomed recent measures taken by Argentina's central bank and finance ministry ahead of a visit by the Fund to the country later in June. Argentina's central bank rolled out a broad package of economic measures on Monday to boost reserves, including an up to $2 billion repurchase agreement. The steps are part of President Javier Milei's 'Phase 3' economic plan, which includes easing monetary controls, floating the peso, and cleaning up the central bank's balance sheet. "We welcome the recent measures announced this represent another important step in efforts to consolidate disinflation, support the government's financing strategy and to rebuild reserves," said Julie Kozack, Director of the IMF's Communications Department during a media briefing. "The Treasury's successful re entry into capital markets and other actions to mobilize financing for Argentina are also expected to boost reserves and stability overall." Kozack said the IMF team continued to engage "frequently and constructively" with Argentine authorities as part of the program's first review of the recently agreed $20 billion loan agreement. To this end, a technical mission was due to visit Buenos Aires in late June, Kozack added, to assess progress on program targets and objectives, and to also discuss the authorities' forward-looking reform agenda. "More broadly and despite the more challenging environment, the authorities, as I said, have continued to make very notable and impressive progress."
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First Post
05-06-2025
- Business
- First Post
Pakistan's budget built on borrowed money faces a reality check
The IMF has demanded stricter compliance with programme requirements, especially from the provincial governments in Pakistan, who are believed to have exceeded their development allocations for next year by almost $3 billion than the IMF's estimates read more The International Monetary Fund (IMF) has tightened scrutiny of Pakistan's budget appropriation amid final consultations. According to reports in Pakistani media, the IMF has demanded stricter compliance with programme requirements, especially from the provincial governments, who are believed to have exceeded their development allocations for next year by almost PKR 850 billion ($3 billion) than the IMF's estimates. The IMF has also directed the provinces to start levying tax on agricultural income by September this year. STORY CONTINUES BELOW THIS AD The fund has also reportedly expressed its displeasure over the government's plan to incentivise enhanced power consumption. IMF asks provinces to control expenditure Pakistani newspaper Dawn reported that the fund has asked the provincial governments to control expenditure, something that doesn't conform with expansionary development plans already approved by the National Economic Council (NEC). On the other hand, provinces have expressed their inability to provide a committed budget surplus this year, citing the Centre's revenue shortfall. Pakistan's crypto mining project in a fix Additionally, the IMF has asked the Pakistani government to continue cost-cutting efforts to stabilise the power sector and provide a level playing field to all. It means that Pakistan's move to allocate 2000MW of electricity to crypto farming at a much cheaper rate (PKR 8-9 per unit) than unit base rate (PKR 25 per unit) may face hurdles. The IMF is against Punjab's plan to provide subsidies for electricity and gas next year, as it did this year. The IMF wants joint efforts to tackle electricity and gas theft and smuggling to reduce financial losses and tax evasion. Provinces will need to streamline their departments next year to align with similar federal efforts this year. IMF's ultimatum to Pakistan This follows the IMF's ultimatum last month on how Islamabad should use the $1 billion aid package it provided. IMF Communication Director Julie Kozack stated that Pakistan has met all the requirements to receive the aid package. However, she emphasised that the funds are strictly to address balance of payments issues and cannot be used for budget financing or other sectors. 'In the case of Pakistan, and this is my second point, the EFF disbursements, all of the disbursements received under the EFF, are allocated to the reserves of the central bank. So, those disbursements are at the central bank, and under the program, those resources are not part of budget financing. They are not transferred to the government to support the budget,' Kozack said. STORY CONTINUES BELOW THIS AD IMF's aid to Pakistan has drawn criticism from New Delhi of late. During the military escalation between the two nuclear-powered nations, India requested the IMF to reassess the bailout, citing Pakistan's allowance of its territory for state-sponsored terrorist activities against Indian citizens. Defence Minister Rajnath Singh recently described the aid as 'indirect funding to terror' and warned international organisations, including the IMF, to reevaluate their decisions to aid Pakistan. The IMF has provided Pakistan with $2.1 billion in two instalments under its Extended Fund Facility (EFF) programme. The instalments are part of a $7 billion agreement signed with Pakistan last year.
Egypt Today
25-05-2025
- Business
- Egypt Today
IMF reaffirms support as Egypt advances 5th EFF review, IMF Mission concludes Cairo visit
Cairo – May 25, 2025: The International Monetary Fund (IMF) has affirmed its continued backing for Egypt as the country works through the fifth assessment of its $8 billion Extended Fund Facility (EFF) agreement. Earlier this month, an IMF delegation traveled to Cairo to engage in talks with Egyptian officials concerning the review, which, upon completion, could lead to the release of a $1.2 billion installment. This marks the second review following the program's expansion in March, when its total value was raised from $3 billion to $8 billion. 'The Fund remains committed to supporting Egypt in building its economic resilience and fostering higher private sector-led growth,' said Julie Kozack, the IMF's Communications Director, during a recent briefing. She noted that Egypt has made 'clear progress on its macroeconomic reform program, with notable improvements in inflation and foreign exchange reserves.' Kozack explained that IMF staff have spent the past few weeks in 'productive discussions with the Egyptian authorities on economic performance and policies under the EFF.' While the field portion of the mission has concluded, virtual meetings will continue in order to finalize policy agreements necessary to complete the review. 'The mission finished discussions in the field, and the meetings will continue virtually to finalize agreement on remaining policies and reforms that could support completion of the Fifth Review,' she stated. Looking ahead, Kozack emphasized the importance of structural reforms to ensure Egypt's economic momentum continues. 'As Egypt's macroeconomic stabilization is taking hold, efforts must now focus on accelerating and deepening reforms that will reduce the footprint of the state in the Egyptian economy, level the playing field, and improve the business environment.' The fifth review comes at a critical time for Egypt, as it approaches the end of its fiscal year in June while grappling with regional and global economic challenges. Completion of the review is a key step toward securing further IMF support and reinforcing investor confidence.
