IMF calls on bilateral creditors to back Ghana’s debt restructuring efforts
The IMF is calling on bilateral creditors of Ghana to support the country’s efforts to restore debt sustainability, as it aims to present its economic programme to the International Monetary Fund (IMF) Board for approval. The Director of Communications at the IMF, Julie Kozack, emphasised the importance of securing financing assurances from partners and creditors in a recent news conference held in Washington DC.
This call for assistance comes at a time when the country is attempting to complete most of its prior actions in record time, having imposed a deadline for the end of March. While it is unlikely that Board Approval will occur before March’s end, the government’s self-imposed deadline has facilitated swift progress on all fronts, increasing the likelihood of Board Approval within the next month or two.
To achieve its goal of restoring debt sustainability, Ghana is working towards securing financing assurances and restructuring its debt of ¢1.7 billion through a deal with China. Currently, Finance Minister Ken Ofori-Atta is leading a government delegation to China, where they hope to secure financing assurances and reach a deal with the Asian economic giant. The minister recently tweeted that the delegation has had very positive and encouraging meetings in China and that they are looking forward to securing external assurances soon.
China’s Foreign Ministry Spokesperson, Wang Wenbin, expressed China’s willingness to assist Ghana in resolving its debt issues, stating that China attaches great importance to the matter and understands the difficulties facing Ghana. Speaking at a Regular Press Conference on Wednesday, Mr Wenbin confirmed the ongoing visit of a high-powered government delegation led by Ken Ofori-Atta to China, stating that China would like to enhance communication with Ghana to work out a proper settlement through consultation.
The IMF programme aims to support Ghana in restoring macroeconomic stability, debt sustainability, protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive growth under the Ghanaian government’s Post Covid Programme for Economic Growth (PC-PEG). Ghana’s efforts to secure financing assurances from bilateral creditors and partners, coupled with its commitment to implementing its economic programme, are critical to obtaining the IMF’s backing and achieving its objectives.
Ghana’s call for support from its bilateral creditors to restore debt sustainability is a significant step towards economic recovery. The country’s efforts to secure financing assurances from partners and creditors, coupled with its determination to implement its economic programme, have garnered praise from the IMF and China, indicating a positive outlook for Ghana’s economic recovery.
As the country strives towards achieving its objectives, it is essential that its bilateral creditors and partners continue to support its efforts to ensure a sustainable and inclusive economic growth path.
