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We will move swiftly to approve Ghana’s IMF programme – IMF MD assures

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The Fund
The Fund

The Managing Director of the International Monetary Fund, Kristalina Georgieva, has given the Fund’s firm assurance that it will act swiftly to approve Ghana’s programme request as soon as a deal is reached with its creditors.

According to her, “we are sure that the creditors are going to move swiftly at next week’s meetings and are also going to move swiftly on Ghana’s request”.

The MD therefore noted that Ghanaians should stay positive on the country’s programme request since an action will soon be taken swiftly.

Madam Georgieva disclosed this in response to questions from journalists during the launch of the IMF MD’s Global Policy Agenda in Washington DC, USA on the sidelines of the ongoing IMF/ World Bank Spring Meetings.

We will move swiftly to approve Ghana’s IMF programme – IMF MD assures

Ken Ofori-Atta on Ghana’s Programme request   

The IMF MD disclosure is coming at a time that Finance Minister, Ken Ofori Atta, in a virtual meeting with Eurobond investors today April 13, 2023 said he expects Ghana to get an IMF programme approval in May 2023.

According to him, Ghana has come very far in meeting most of the pre-conditions needed before it can submit its request to the IMF Board for programme approval.

Joy Business in March 2023 gathered from some international investors that Ghana will get a programme approval from the IMF Board by the middle of May 2023. 

Economist Dr. Theo Acheampong on PM EXPRESS Business Edition noted that based on his engagement with some of Ghana’s Partners May 2023 is the likely date for Ghana’s programme to be approved.

Helping Ghana 

The IMF Managing Director noted that the need to help Ghana has been influenced by its performance over the years and its track record of sound macroeconomic management, adding that “I still believe that the challenge that Ghana is going through is not just as a result on the domestic situation but external as well”.

She added that “Ghana has done well in the past to tap into the capital market to finance its budget.”

“Therefore, we believe that if Ghana is facing some challenges this time, it ought to be helped.

Negotiations with Creditors for possible debt restructuring 

The IMF MD also disclose that Ghana’s creditors are expected to meet next week to try and make progress on the debt restructuring talks as well as financing assurances on the country’s IMF Programme.

The MD noted that she expects these creditors to act quickly to deal with Ghana’s request during these meetings.

The disclosure is coming at a time the Paris Club has set up a Partial Creditor Committee to begin formal engagement with Ghana on a possible debt restructuring talks.

The committee is expected to meet next week.

Details on Partial Creditor Committee

The Creditor Committee is expected to begin engagement with Ghana on the possible restructuring of Ghana’s debt.

Joy Business is learning that this committee is partial because it doesn’t include China which had some concerns about how some of its debt owed Ghana should be classified.

Sources say there were concerns about how debts owed the China Exim Bank should be classified as “State or Private Debt”

However, there are indications that China may return to join the committee that has been formed to negotiate with Ghana as a “Block”. 

Joy Business also understand that India which is not a member of the Paris Club but was invited to participate in the meeting has agreed to join the Interim Committee that has been formed. 

Partial Creditor Committee impact on Ghana’s Programme

Joy Business is learning that this could be the first in the process of restructuring Ghana’s debt or cancellation. 

Ghana is said to be owing the Paris Club more than $5 billion.

According to the IMF, Ghana needs financing assurance from these creditors before it can take its programme to the IMF Executive Board for approval.

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