A minority in Ghana’s parliament has expressed concern over a reported impasse in negotiations for the second tranche of a $3 billion credit facility from the International Monetary Fund (IMF).
Minority Caucus Leader Dr Cassiel Ato Forson revealed that there is a disagreement between the government and the International Committee of Creditors.
The disagreement revolves around the cut-off point for external debt in the debt restructuring process, which is a key element in securing the next tranche of $600 million from the IMF.
These assertions were made by Ajumako Enyang Esiam MP and former Deputy Minister of Finance in his closing remarks during the 2024 Budget debate in Parliament on Wednesday, November 29, 2023.
The alleged stalemate has raised questions about the progress and agreement in negotiations on a financial support package between Ghana and the IMF.
βMr Speaker, I would like you to know that negotiations between Ghana and the International Committee of Creditors (ICC), comprising China and the Paris Club 50, have reached an impasse. There is a difference of opinionβ, about the foreign debt that must be excluded from the restructuring. Mr Speaker, there is no need to sound the alarm that Ghana is between a rock and a hard place at this point. β
βGhana must decide whether to accept the deadline proposed by the International Committee of Creditors and have the IMF Executive Board approve the $600 million second tranche, or reject it.β
Dr Forson clarified that if Ghana agrees to the cut-off points proposed by the International Committee of Creditors (ICC), more debt will be removed from the ongoing debt restructuring.
Therefore, it is necessary to immediately incorporate the excluded debt into the budget to facilitate its repayment.
βThe moment we start repaying our foreign debt, everything will change in this budget.β
Ghana has secured a $3 billion bailout from the International Monetary Fund (IMF) to address the challenges of a struggling economy characterized by high debt, inflation and a weak currency.
The first installment of $600 million from the Bretton Woods institutions has already been received by the country.
In October 2023, the IMF announced that it was awaiting the outcome of discussions with Ghana and its bilateral creditors before implementing the next $3 billion bailout package.
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