The International Monetary Fund (IMF) has said it is encouraged by the measures the government of Ghana has taken towards having a program with the Fund.
The Director of African Department of the IMF, Abebe Aemro Selassie, who said this, acknowledged however, that those measures have been difficult as a result of the crisis.
Mr. Selassie was speaking on the status of Ghana’s pending deal with the IMF, at the just ended World Bank and IMF Spring Meetings in Washington D.C.
“We are very encouraged by the steps that the government has taken over the last several months since the program request. It’s been a very difficult time of course, very difficult, very significant, measures that have had to be taken, and the initial steps that the government has taken are very encouraging,” he said.
According to him, the IMF is now comfortable that all of the measures required for them to present the program to the Executive Board are complete, except for the required financing assurances from external creditors.
CORROBORATE
The remarks of the Director of African Department of the IMF, explained the assurance given by his boss, Kristalina Georgieva, during a press conference in Washington D.C. last week that the Fund would have a program with Ghana soon.
At the press conference, she indicated that Ghana’s international creditors were showing goodwill, and thus, urged Ghanaians to stay tuned and positive.
She further assured Ghanaians that the Fund would act swiftly as Ghana’s creditors were also moving faster.
“Our program is a bridge for Ghana and to tell you the truth, I am actually quite optimistic. I think Ghana is trying to move and creditors are going to move swiftly, so I guess the short answer to you is to stay tuned and stay positive,” she said.
Madam Georgieva also indicated that discussions among creditors are expected this week with regards to Ghana’s foreign debt restructuring.
Already, reports indicate that the government of the People’s Republic of China has softened its stance in relation to the debt Ghana owes it, and the need for restructuring.
FACTORS
Speaking on the status of the IMF negotiation, MrAbebe Aemro Selassie observed that the country’s successful domestic debt reorganization, improved revenue measures, and speedy negotiations with external creditors have contributed to a quicker response to its request for support from the Fund.
He noted that Ghana’s development of Post Covid Programme for Economic Growth (PC-PEG) has also been exemplary.
He explained that it shows that the country has clarity on what to do and makes it easy for the global community to rally around Ghana for a quicker response to the economic crises.
DONATION
Meanwhile, the World Bank has committed an amount of $250 million to Ghana’s Financial Stability Fund, the Minister for Finance, Ken Ofori-Atta has disclosed. The amount, he added is expected to hit the account of the Fund by the end of the third quarter.
He told journalists at a news conference in Washington DC, adding that the government of Ghana would also commit some amount of money into the Fund, and encourage on other donors to help.
He noted that currently, talks are underway for donor partners such as the African Development Bank for further resources into the Fund.
ABOUT THE FUND
The Ghana Financial Stability Fund (GFSF) was established by the government in December last year, with a target of GH₵ 15 billion to be provided by the government and its development partners.
The Fund will provide liquidity to financial institutions that participated fully in the Domestic Debt Exchange.
