We’ve Made Substantial Progress Towards Securing IMF Bailout- Akufo-Addo

President Nana Addo Dankwah Akufo-Addo has expressed hope in securing a bailout from the International Monetary Fund (IMF) following what he says is “substantial progress” in the debt exchange programme and engagement with creditors.

His hope is from the supportive role played by the Fund and the World Bank in that regard.

Ghana is seeking a US$3 billion bailout from the IMF but has to satisfy some conditions including debt restructuring after assessments proved that the country’s debt was at an unsustainable level.

Already, domestic creditors have been engaged with bilateral creditors on the line.

In an address on May 1, President Akufo-Addo said progress has been made with bilateral creditors and a substantial in that regard.

“After achieving a Staff Level Agreement with the IMF in December 2022 in record time, six months after beginning the negotiations in July 2022, we have continued to work tirelessly to complete all prior actions required to present Ghana’s Programme to the IMF Executive Board for approval. We have also made substantial progress on the debt exchange programme, as well as on our engagements with bilateral creditors to secure financing assurances required for the IMF Programme.”

According to him, the next round of meetings of the Paris Club will result in the formation of an Official Creditor Committee inclusive of China, for the provision of financing assurances needed for the bailout.

Earlier it was reported that China was unwilling to be part of the Committee and with this, the government expects the IMF Board to consider Ghana’s programme for imminent approval.

“We are very confident that the approval of the IMF Programme will contribute significantly to the revival of confidence required to drive the successful implementation of the Post COVID-19 Programme for Economic Growth and the key structural reforms for economic recovery and sustained inclusive growth.

“Already the progress we have made in securing the IMF Staff Level Agreement, in the debt exchange programme, and the implementation of key structural reforms, are yielding benefits. Inflation is decelerating, interest rates on government treasury notes are declining, the depreciation of the cedi is slowing down, and GDP growth for 2022 has performed beyond expectations.”

He furthered that the implementation of the Post COVID-19 Programme for economic growth will transition Ghana into economic recovery in the medium term to over five per cent.

“The medium-term growth will be supported by key interventions to support improvements in the business environment and export competitiveness, promotion of entrepreneurship for private sector development, fast-tracking the implementation of key growth-oriented programmes under the Ghana CARES (Obaatan Pa) Programme, transitioning to a digital economy to boost productivity, tax collection, and the formalisation of the economy, and the strengthening of policies to adapt to and mitigate climate change for inclusive growth.”