IMF deal firmly positions Ghana towards a resilient economic recovery – Finance Ministry

The Finance Ministry has said the $3 billion bailout approved by the International Monetary Fund (IMF) as well as other reforms taken by the government will position Ghana towards a resilient economic recovery.

In a tweet, the Ministry said “The IMF Board has today approved Ghana’s request for a $3 billion ECF, backed by our Post Covid-19 Programme for Economic Growth (PC-PEG). Our strong growth & reform programme, coupled with this #IMFDeal, firmly positions Ghana towards a #ResilientRecovery #GHANARISIN”.

The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May 12.

A press statement issued by the Paris Club on Friday, May 12 said “The creditor committee stresses that the Ghanaian authorities are expected to seek from all private creditors and other official bilateral creditors debt treatments on terms at least as favorable as those being considered by the creditor committee, in line with the comparability of treatment principle.

Consequently, it added “the creditor committee urges private creditors and other official bilateral creditors to commit without delay to negotiate with Ghana such debt treatments that are crucial to ensure the full effectiveness of the debt treatment for Ghana under the Common Framework.”

Also, a creditor committee for Ghana has been formed by countries with eligible claims to see to the quick implementation of the resolution. The creditor committee is expected to be co-chaired by China and France.

“The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the “Common Framework for Debt Treatments beyond the DSSI” endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club.”

“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs.

“The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs,” the statement added.

The Fund will today Thursday, May 18 give details on Ghana’s disbursements.

In a media advisory on Wednesday, the IMF says a virtual press conference will be held on Thursday in Washington DC “to brief journalists on the outcomes of IMF Executive Board meeting on Ghana’s request for an Extended Credit Facility Arrangement, which will take place on Wednesday, May 17”.

Minister of Finance Kenneth Nana Yaw Kuntukunuku Ofori-Atta and Central Bank Governor Dr Ernest Kwamina Yedu Addison will join the IMF Mission Chief for Ghana, Stephane Roudet, for the press conference.

Senior Communications Officer for IMF Tatiana Mossot will coordinate the press conference.