Ofori-Atta, Dr Addison to make final push for IMF programme at IMF/World Bank Spring Meetings
Ghana, like many African countries, has been hard hit by the economic fallout from the Covid-19 pandemic. In response, the country’s Finance Minister, Ken Ofori-Atta, has been leading a team to Washington DC to secure a $3 billion bailout from the International Monetary Fund (IMF). The team, which includes the Governor of the Bank of Ghana, Dr. Ernest Addison, as well as other members of the economic management team, is expected to make a final push for the board of the IMF to approve the deal.
This is a crucial moment for Ghana, which has been waiting for months for the IMF to approve a staff-level agreement that would provide much-needed financial support for the country’s struggling economy. The government had initially projected that the agreement would be approved by the end of March, but delays in the Domestic Debt Exchange Programme (DDEP), which saw some GHC12 billion debt restructured, have caused a setback.
The external debt restructuring, which is yet to be completed, is also important to Ghana’s economic recovery. It will provide financial assurance from external borrowers, including bilateral creditors such as China and the Paris Club. This debt forgiveness and treatment is critical to Ghana’s long-term economic stability and ability to rebound from the pandemic’s devastating impact on its economy.
The IMF deal has been described by many economists as a tool that could help turn around Ghana’s economic fortunes. However, it is important to note that such bailouts come with conditions, and Ghana will need to meet certain fiscal targets to receive the full amount of the loan. The government has already taken steps to reduce the budget deficit and improve fiscal management, but there is still much work to be done.
In addition to meetings with the IMF and World Bank management, the Ghanaian delegation is also expected to hold talks with commercial, bilateral, and multilateral creditors at the IMF/World Bank Spring Meetings. These talks will be critical in securing the necessary support for Ghana’s economic recovery, and it is hoped that they will pave the way for further investment in the country’s economy.
It is worth noting that Ghana is not alone in seeking support from the IMF during this difficult period. Many African countries, including Zambia, Ethiopia, Rwanda, and Senegal, are also seeking IMF support to weather the economic fallout from the pandemic. The IMF has been instrumental in providing financial support and guidance to countries during this challenging time, and its continued support will be critical to ensuring that countries like Ghana can emerge from the pandemic stronger and more resilient than ever.
The approval of the IMF bailout deal would provide much-needed support to Ghana’s economy during this difficult period. However, it is important to note that such support comes with conditions and that Ghana will need to meet certain fiscal targets to receive the full amount of the loan. The meetings with the IMF and other creditors are critical in securing the necessary support for Ghana’s economic recovery, and it is hoped that they will pave the way for further investment in the country’s economy.
