IMF Hails Ghana’s Debt Restructuring Agreement as Key to Programme Approval

by Louisa Afful
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The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has hailed Ghana’s recent agreement with its Official Creditor Committee (OCC), noting its potential impact on the approval of a crucial US$360 million tranche. In a social media update on Wednesday, Georgieva commended Ghana for reaching this agreement, stating it will facilitate the IMF Executive Board’s review of the country’s programme later this month. This development follows Ghana’s Ministry of Finance announcement regarding the restructuring of approximately US$13 billion in external debt, a significant step towards restoring the country’s long-term debt sustainability.

Finance Minister Dr. Mohammed Amin Adam explained that the OCC agreement will also bolster ongoing discussions with private creditors aimed at achieving similar agreements swiftly. He emphasized the agreement’s importance in Ghana’s debt restructuring journey and its alignment with the country’s ambitious reform agenda, supported by development partners.

Economist Professor Godfred Alufar Bokpin, in an interview with the Ghana News Agency, characterized the OCC agreement as a “major breakthrough” in Ghana’s debt restructuring efforts. He expressed confidence that the Memorandum of Understanding (MoU) would be finalized by month-end, potentially paving the way for IMF Executive Board approval of the programme’s second review and subsequent disbursement of the US$360 million tranche.

Professor Bokpin cautioned against complacency, urging intensified reforms to address structural benchmarks such as inflation and exchange rate stability to consolidate gains. He highlighted the critical nature of preparing for the programme’s third review later in the year, especially during a potentially volatile election season, stressing the need for stringent fiscal responsibility measures to curb excessive spending.

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