Ghanaian President Nana Akufo-Addo announced on Friday that the country has secured financing assurance from the Paris Club, a group of creditor nations.
President Akufo-Addo expressed optimism that the IMF will approve Ghana’s request for a bailout next week. He said that the approval of the bailout will mark the beginning of a “massive economic recovery” for Ghana.
The President also thanked the Paris Club for their support and said that Ghana is committed to meeting its obligations under the IMF program.
The IMF bailout is expected to help Ghana address its economic challenges, including high inflation, a widening budget deficit, and a depreciating currency. The program is also expected to help Ghana restore macroeconomic stability and create jobs.
“It means that hopefully, next Wednesday the Board itself will meet and give final approval.”
“So the sacrifices that the country has to make this last year, it may be that at long last we are going to see the beginning of the recovery, with the approval of the IMF we will be in a strong position then to make other arrangements to help our economy get back.”
China and the Paris Club have asked private creditors and other official bilateral creditors to commit to Ghana’s deal without any further delay after they agreed to provide the debt assurances needed for Ghana to secure the $3bn bailout from the International Monetary Fund(IMF)
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