Palpable fear of possible derailment of Ghana’s IMF deal by some bilateral donors
Ghana’s Parliament’s Finance Committee Chairman, Kweku Kwarteng, has expressed confidence in the country’s ability to secure a deal with the International Monetary Fund (IMF) in a timely manner. However, concerns have been raised about the commitment of Ghana’s external creditors to support the country throughout the three-year programme. Kwarteng has highlighted that these commitments are not legally binding and the fear of possible derailment by some bilateral donors is very palpable.
One of the key requirements for Ghana’s external debt restructuring was for the country to obtain the commitments of its external debtors to support it as it completed the three-year programme. These commitments, while not direct reliefs, are indications of willingness to move forward with Ghana on its path to recovery. The commitments were given on the basis that Ghana had committed in its budget to take certain steps.
Kwarteng emphasized that the success of the programme hinges on the actualization of these commitments. The IMF is expecting to see the realization of the commitments before providing the second tranche of the deal. This, therefore, puts a significant challenge on Ghana’s bilateral partners, as they must follow through on their commitments to ensure that the programme is not derailed.
In a recent interview on the PM Express Business Edition, Kwarteng highlighted the need for Ghana’s external creditors to stick to their commitments once the programme is finalized and underway. The commitments, while not legally binding, are necessary indications of the creditors’ willingness to support Ghana. Kwarteng noted that this is a technical matter and that Ghana had already ticked the box of having a good faith engagement with its private creditors.
Despite concerns about the potential derailment of the programme by some bilateral donors, Kwarteng remained optimistic about Ghana’s ability to secure the commitments it needs to proceed with the IMF deal. He assured that the boxes would be ticked, and all commitments would be realized.
The success of Ghana’s programme with the IMF largely depends on the actualization of commitments made by external creditors. Ghana must, therefore, ensure that its bilateral partners remain committed to their promises to avoid any derailment of the programme. The commitments, while not legally binding, are necessary indications of willingness to move forward with Ghana’s path to recovery.
