Policy and reform commitments under Ghana’s economic programme bearing fruit – Kristalina Georgieva

The managing director of the International Monetary Fund (IMF), Kristalina Georgieva has said policy and reform commitments under Ghana’s economic programme is beginning to bear fruit.

“The policy and reform commitments under Ghana’s economic programme are starting to bear fruit,” the IMF chief said in a post on the X platform.

Ghana is looking to restructure US$20 billion of external debt, which totalled about US$30 billion at the end of 2022, and has already restructured most local debt.

Restructuring negotiations last year were a “very difficult, painful process,” but Ghana has “built pretty good momentum”, Finance Minister Ken Ofori-Atta said.

The IMF board is due to meet on Friday to decide on a US$600 million disbursement from Ghana’s bailout programme. Getting approval is usually seen as a formality once a meeting has been scheduled, and would unlock funding from other multilateral lenders.

The World Bank was expected to decide on US$550 million of “sorely needed” funding on 25 January, Ofori-Atta added.

Ghana is reworking its debts under the Common Framework, a restructuring process set up by the G20 countries during the COVID-19 pandemic that has been criticised for slow results.

Deal clinched
Meanwhile, Ghana has reached an agreement with its official creditors on a comprehensive debt treatment under the G20 Common Framework, Finance Minister Ken Ofori-Atta has stated.

In a post on the X platform, Ofori-Atta said, “Thank you to our bilateral creditors for their support & cooperation, that has today enabled us to reach agreement with our Official Creditors on comprehensive debt treatment under the G20 Common Framework. Significant step towards long-term debt sustainability!”

The terms of the agreed debt treatment are expected to be formalised in a Memorandum of Understanding between Ghana and Official Creditors, which will then be implemented through bilateral agreements with each member of the Official Creditor Committee, a statement from the Finance Ministry said.

“The Government of Ghana looks forward to further engaging with the Official Creditors to ensure prompt implementation of the agreed terms,” the statement added.

Bilateral lenders, including China and France who co-chair the Official Creditor Committee (OCC), hold around a quarter of Ghana’s US$20 billion external debt earmarked for restructuring.

Source: asaaseradio