"Policy interventions in 2020 were also critical to safeguard livelihoods and paved the way for a faster rebound of economic activity," said Carlo Sdralevich, the mission head, in a statement following virtual meetings ended on May 12.
He said last year's government actions to contain the pandemic also exacerbated pre-existing budget constraints and public debt vulnerabilities.
"The 2021 budget's recent policy pivot towards fiscal consolidation is an important step in the right direction and a difficult one in a pandemic," said Sdralevich.
Fiscal consolidation should focus around debt and debt service reduction while allowing for social, health, and development spending, he added.
The West African country owes the Fund about $2 billion, including $1 billion in pandemic aid funding received in April 2020.
Ghana spends roughly half of its revenue on interest payments, with total debt rising near 80% of GDP. It has nearly $33 billion in marketable debt according to Refinitiv data, of which over $13 billion is dollar-denominated.
(Reporting by Rodrigo Campos; Editing by Leslie Adler and David Gregorio)
By Rodrigo Campos
