IMF insists on not interfering in Gov’t’s debt restructuring for $3bn deal Board approval
The International Monetary Fund (IMF) has indicated that it has no interest in interfering with government’s debt restructuring programme for a board approval of the $3bn ECF programme for Ghana.
The assertion by the IMF Mission Chief to Ghana, Stephane Roudet, comes a day after a Staff Level Agreement (SLA) between Ghana and the IMF was signed.
In an interview on Wednesday morning, December 14, Mr Roudet noted, “With reference to the domestic debt exchange, it’s not for the IMF to speak for what creditors will decide on and moreover, we are just in the middle of the process and the best thing to do is to let the government and his creditors discuss the offer made them.”
“The IMF is very concerned about the debt situation and is ensuring that the strategy will deliver,” he added.
Ghana, IMF reach SLA; but Board approval of $3bn ECF dependent on…
Government and the IMF have reached a staff-level agreement (SLA) on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about $3 billion.
According to government, the ECF programme aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.
Adding that the programme, envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks.
But despite the SLA reached by government and the IMF, the eventual approval of the ECF programme by the Board of the IMF is dependent on a number of factors.
Speaking at a press briefing on Tuesday, December 13, 2022, IMF Mission Chief to Ghana, Stéphane Roudet, noted that approval of the ECF programme for Ghana by the IMF Board will be dependent on support for government’s Domestic Debt Exchange Programme (DDEP) by creditors (both external and domestic) as well as the ability of the programme to restore Ghana’s debt to a sustainable level.
“Assurances from Ghana’s creditors that they will support the Domestic Debt Exchange Programme and the ability of the programme to sufficiently restore debt sustainability, will the be among the major reasons for which the IMF Board will approve the ECF programme,” he said.
