Akufo-Addo hopeful for IMF Board approval by end of March
Ghana is seeking to secure an agreement with external creditors for a debt treatment program with the aim of restoring the country’s economic stability. The West African nation is in discussions with the International Monetary Fund (IMF) to secure Board approval for a program that will enable the country to restructure its external debt.
President Akufo-Addo expressed his optimism that the country will secure Board approval for an IMF program by the end of March 2023. This would be a significant achievement, given that Ghana had already reached a staff-level agreement with the Fund in December 2022, which it is now working to fulfill systematically.
However, the country faces a significant obstacle in its efforts to restructure its external debt. China, one of Ghana’s major creditors, has refused to participate in a credit committee to discuss the country’s debt restructuring. Ghana owes China around $1.7bn, which has prompted the country’s leaders to take a proactive approach to secure a debt treatment program with external creditors.
In an effort to resolve the issue with China, the Ghanaian Finance Ministry has been holding talks with officials from the Chinese Exim Bank. While the country remains optimistic about the prospects for securing a debt treatment program, the situation remains uncertain, given China’s current stance.
Nevertheless, the Ghanaian president expressed confidence that the country would be able to secure the necessary cooperation from members of the Paris Club and the Chinese Exim Bank to achieve the desired outcome. The recent visit to Accra by a delegation from China’s Exim Bank is a positive sign that the country is willing to engage in discussions with Ghana.
The successful conclusion of the debt treatment program is expected to set the stage for a strong recovery of Ghana’s economy. The country is looking to rebuild its economic stability and avoid the risk of defaulting on its external debt, which could lead to severe economic consequences.
Ghana is currently engaged in discussions with the IMF and external creditors to secure a debt treatment program that will enable it to restructure its external debt and restore its economic stability. While the situation with China remains uncertain, the country remains optimistic that it will be able to secure the necessary cooperation to achieve its goals. The successful conclusion of the program is expected to be a significant milestone in the country’s economic recovery, and a cause for optimism for its citizens and investors alike.
