Minister for Finance, Ken Ofor-Atta has said that government is yet to finalize discussions with the International Monetary Fund (IMF) on Ghana’s debt sustainability status, the outcome of which will indicate whether or not the country restructure its debt as part of plans to secure a $3 billion loan from the Fund. Renege
Speaking at a press briefing on Wednesday, September 28, 2022, the Minister said government together with the IMF are conducting a Debt Sustainability Analysis (DSA) Report, which when concluded will indicate if there is the need for debt restructuring in the first place and if necessary, how it should be carried out as well as which areas will be affected.
“The government team and the IMF team are discussing policy measures and structural reforms proposed in our economic programme aimed at addressing the economic challenges facing the country towards restoring and sustaining macroeconomic stability, fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection.
“We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis. Government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-tract the IMF negotiation process,” he added.
This follows widespread media reports that Ghana is poised to start talks with domestic bond holders on restructuring of its local currency debt on the back of a further downgrade in its credit ratings by International Ratings Agency, Fitch last Friday.
However, Mr. ofori-Atta maintained that it is too early to speculate on debt restructuring stressing that it mainly depends on the ongoing Debt Sustainability Analysis with the Fund. This, he said will inform the next line of action as government and the Fund remain committed to ensuring no harm is done to the interest of stakeholders as a result of this programme.
Meanwhile, the IMF team are in town to continue official negotiations with government for the loan request. The IMF Mission will cover a period of 10 days and according to the Minister, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022.
