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Ghana’s $ 3 billion bailout was unanimously authorized by the Executive Board of the International Monetary Fund (IMF) on May 17 during a meeting in Washington.
On Friday, May 12, 2023, Ghana obtained the finance assurance from the Paris Club.
According to a press release from the Paris Club on May 12, “The creditor committee emphasizes that the Ghanaian authorities are expected to seek debt treatments from all private creditors and other official bilateral creditors on terms at least as favorable as those being considered by the creditor committee, in accordance with the comparability of treatment principle.
As a result, it was further stated that “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.”
A committee of creditors for Ghana has also been established by nations with legitimate claims to ensure the swift application of the resolution. China and France are anticipated to co-chair the creditor committee.
The “Creditor Committee” looked at Ghana’s macroeconomic and financial situation, including its capacity to service its debt over the long term and its formal request for a debt treatment under the “Common Framework for Debt Treatments Beyond the DSSI,” which was approved by the Paris Club and the Saudi G20 Presidency in November 2020.
“To meet Ghana’s urgent funding needs, the creditor committee supports the proposed IMF upper credit tranche (UCT) program and the IMF Executive Board’s prompt acceptance of it.
In order to address Ghana’s long-term financial demands, the statement continued, “The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana.”
On May 18, the Fund will provide information about Ghana’s disbursements.
The International Monetary Fund (IMF) said on Wednesday that it would hold a virtual news conference on Thursday in Washington, DC, “to brief journalists on the outcomes of the IMF Executive Board meeting on Ghana’s request for an Extended Credit Facility Arrangement, which will take place on Wednesday, May 17.”
Stephane Roudet, IMF Mission Chief for Ghana, will be joined at the press conference by Minister of Finance Ken Ofori-Atta and Central Bank Governor Dr. Ernest Kwamina Yedu Addison.
The news conference will be organized by Tatiana Mossot, senior communications officer for the IMF.
By Owusu Boateng Quansah|Locotvgh.com