DUBAI, Oct 1 (Reuters) During its talks on a financial assistance program, the International Monetary Fund (IMF) has told Ghana that it would like to see a freeze on public sector wages, President John Mahama said on Wednesday.
Reuters was told by Mahama on the sidelines of a conference in Dubai, the government has said that salary levels must take account of inflation.
At four-year Inflation in the West African country stood high of 15.9 percent in August. On public sector wages, to securing the IMF program an agreement is seen as crucial, which aims to restore Ghana’s fiscal balance.
Mahama told Reuters, “A wage freeze was recommended by the IMF. There must be adjustments for inflation. Over the next three years you can’t say you’re not going to do any wage increases. As inflation decreases, the need for higher (wage) increases reduces.
The last month IMF and the Ghana held a first round of talks in Accra. A second round of talks will be held in Washington this month.
The three-year contract would like to start in January, Mahama said. But it might be factored into the annual budget if an agreement was concluded before then, which is due to be presented in November.
The fiscal problems of Ghana could hit economic growth hard, as a yawning budget deficit, high inflation and a tumbling currency take their toll on one of Africa’s star economies of recent years, the IMF said last week.
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