Ghana on course for IMF approval – Finance Minister

The Paris Club, a group of bilateral creditors that helps with workable solutions to payment problems faced by debtor nations, will form an Official Creditor Committee this week to look into Ghana’s request for financial assurances.

The assurances, which come with debt restructuring and further strategic lending, will enable the country to present its programme to the International Monetary Fund (IMF) Board for approval.

The Minister of Finance, Ken Ofori-Atta, who disclosed this to the Daily Graphic in an interview, said the formation of the committee and the financial assurances were to enable the country’s programme to be laid before the IMF board shortly after the Spring Meetings.

The finance minister further stated that the country was firmly on course for IMF Board Approval.

Mr Ofori-Atta and the Governor of the Bank of Ghana, Dr Ernest Addison, are leading a high-level Ghana delegation to the World Bank and IMF Spring Meetings from April 10 to 16, this year in Washington D.C.

On the sides of the meetings, the delegation will meet with members of the Paris Club, China, and other bilateral creditors.

Among other agenda items at the Spring Meetings, Mr Ofori-Atta will chair the V20 Inter-Ministerial dialogue on green financing for climate vulnerable nations.

The finance minister will also attend meetings focusing on re-engineering the global financial architecture to promote geographical inclusion.

“During the World Bank and IMF Spring Meetings, we will be meeting with the Paris Club and other bilateral creditors.

They will also be meeting separately to consider Ghana’s request for financing assurances,” Mr Ofori-Atta indicated.

The minister added that China had indicated its intention to join the all-important meeting and this marked a significant step in our progress towards IMF Board approval.

“We are, therefore, expectant, optimistic and hopeful that the meeting would result in the formation of an Official Creditor Committee, and the provision of financing assurances to the IMF.

With that in the bag, we will be ready to go to the IMF Board for approval,” Mr Ofori-Atta emphasised.

When asked about the status of other actions that had to be completed prior to board approval, Mr Ofori-Atta said the government, Parliament, and the people of Ghana had worked tirelessly and sacrificed greatly to get “us where we are now”.

Key revenue measures were approved by Parliament on Friday, March 31, this year to position government to rake in an additional GH¢4 billion annually, which the finance minister said was quite significant to boost the country’s fiscal position.

Mr Ofori-Atta expressed gratitude to Parliament for its unwavering support of the country and the economic recovery programme.

“Indeed, since the presentation of the 2023 Nkabom Budget, we have collectively demonstrated a unity of purpose that is inspiring,” Mr Ofori-Atta stated.

“We have also been able to attain Staff Level Agreement with the IMF and successfully concluded the Domestic Debt Exchange Programme with 85 per cent participation rate,” he added.

Mr Ofori-Atta indicated that the government had also engaged and garnered support from its bilateral

Source: graphic online