Gov't committed to austerity despite November elections – Terkper

Ghana will not quit its current programme with the International Monetary Fund (IMF) and will not compromise on targets set under the three-year deal for elections this year, the finance minister said on Monday.

"We remain optimistic about this three-year programme and will ensure that all programme reviews are successfully completed through to 2017, given the enormous benefits to the economy," Seth Terkper told reporters in Accra.

Ghana, the world's second-largest cocoa exporter which also exports gold and oil, signed a three-year austerity programme with the IMF in April 2015 to fix an economy plagued by deficits, high public debt and inflation consistently above target.

Under the deal, the West African country will receive up to US$940 million from the Fund as balance of payments support. It has so far received US$228 million in two tranches.

However, markets fear a third disbursement scheduled for June could be delayed if spending overshoots targets in the run-up to general elections in November.

President John Mahama is seeking a second term in what is expected to be a close race between him and main opposition candidate Nana Akufo-Addo.

"Ghana will not quit the IMF programme, elections or no elections," Terkper said, adding that Ghana has drafted legislation to restrict the central bank from lending to government to ensure it sticks to the programme.

Ghana's public debt stood at 71 percent of gross domestic product at the end of 2015. Last week Nigeria cut gas supplies to Ghana because of unpaid bills.