On Friday, January 19, the IMF board will meet to decide how to divide the US$600 million that Ghana received as part of its bailout package.
The deputy minister of finance, Dr. John Kumah, asserts that Ghana’s economy is now poised for long-term growth that will benefit Ghanaians, having successfully overcome recent setbacks.
Dr. Kumah emphasized in a January 19 Facebook post that Ghana’s request for debt treatment under the G-20 Common Framework was unanimously approved. This, in his opinion, forms the basis of his upbeat forecast for the nation’s economic future.
Dr. Kumah expressed gratitude to the Ghanaian populace for their unwavering adherence to governmental laws and policies.
He expressed particular gratitude for their assistance in lessening the negative effects of the COVID-19 pandemic and the conflict between Russia and Ukraine.
The member of parliament for Ejisu is optimistic about the country’s future. He emphasized that the debt relief plan that has been approved creates the conditions for long-term economic growth and eventually helps Ghanaian citizens.
“An essential precondition for the IMF Program was verification that the public debt of Ghana was growing at a sustainable rate.”
Ghana subsequently started reorganizing its external and domestic debt. Launched on December 5, 2022, the Domestic Debt Exchange Programme (DDEP) has been completed successfully with over 90% participation. The current commercial debt (Eurobonds) negotiations are anticipated to gain momentum following the OCC’s approval of bilateral debt treatment, according to a section of his Facebook post.
The unanimous approval of Ghana’s request for debt treatment under the G-20 Common Framework for Debt Treatment Beyond the Debt Service Suspension Initiative (CF-DSSI) marked a significant development in the public debt trajectory, according to Dr. Kumah.
In order to keep the growth in public debt under control and reduce the risk of financial distress, the government has been combining fiscal restraint with debt restructuring measures. The Official Creditor Committee’s (OCC) decision to back the government’s enormous endeavors is praiseworthy, novel, and worthy of celebration. However, we proceed cautiously because there is still more work to be done in the future.
