The International Monetary Fund (IMF) has rescheduled its board meeting to January 11, 2024 to consider the second review and disbursement of $600 million under the Fund’s program to Ghana..
what is this joy business This is what we heard from some members of the Government Creditors Committee (OCC), which is negotiating with Ghana on the country’s debt restructuring with bilateral creditors.
Sources said Ghana has made some significant progress regarding the terms of bilateral debt restructuring with external bilateral creditors, particularly China.
joy business I also understand that just last week, significant progress was made with China, one of the OCC co-chairs, on the proposed terms of bilateral debt restructuring.
It is based on these developments that the IMF has set this new date. It is believed that all outstanding issues would have been resolved by this new date to enable a Board meeting on the Ghana program to be held.
The draft memorandum would have been issued by now by the Official Creditors Committee, but the action was delayed due to concerns from one member, the people said.
Why were you late?
The IMF Executive Board was scheduled to meet on Ghana’s second review program in November 2023.
However, difficulties in reaching an agreement with China on debt restructuring forced the fund to reschedule the deal twice. 1st week of December 2023 and he December 21, 2023.
However, these dates are not officially listed on the website.
The situation was similar to what happened when the IMF approved Ghana’s program earlier this year.
China had previously expressed concerns about a “test date” for Ghana’s debt restructuring. Our sources said the Asian giant wanted the IMF to review the December 2022 date.
Some developments in China also affected Ghana in terms of the rapid progress of an interim agreement with the Official Committee of Creditors.
However, sources said all these hurdles have now been cleared, which could soon help the Government Creditors Committee issue the necessary memorandum on Ghana’s debt restructuring.
Will the January 11, 2024 date be rescheduled??
Based on communications with some officials on the Official Creditors Committee, there is optimism that some significant progress will be made by the January 11, 2024 board meeting. This is due to new commitments from China.
Officials said China resolved to address all issues with Ghana by the new board meeting date.
What does the IMF Executive Board want before it meets in Ghana?
Officials said the IMF was not considering a “full agreement” between the official committee of creditors and Ghana on bilateral debt restructuring, but some members of the official committee He is hoping for what he might call a “letter of comfort” or a memorandum. Japan is open to talks with Ghana regarding bilateral debt restructuring.
Some argue that the IMF is also seeking some guarantee from these bilateral creditors that they will fully participate in providing loan guarantees for Ghana’s programs.
joy business It is also understood that a strong visit by Ghanaian authorities to China may be undertaken to address any remaining issues with China.
All of this is expected to occur before January 1, 2024.
Again, some sources say China is trying to get the necessary “political blessings” to reach an initial agreement on everything at the Official Creditors Committee level to speed up discussions. He also says that he is trying.
Government response to these developments
Ghanaian government officials have expressed confidence in reaching an agreement as significant progress has been made on debt restructuring with all bilateral creditors.
They claim that Ghana can have the Official Committee of Creditors issue a memorandum for the IMF Executive Board to meet on January 11, 2024 regarding Ghana’s programme.
An official told Joy Business on condition of anonymity: “Let us put it on record that the delay in holding the IMF Executive Board meeting on Ghana has nothing to do with the government not meeting the conditions of the IMF program.” We should,β he said.
Finance Minister Ken Ofori-Atta told Joy Business in a separate meeting that the government is very confident of reaching an agreement soon with all bilateral creditors to facilitate the IMF Executive Board meeting on Ghana. He said he has.
He added: βGhana will continue the necessary engagement with all bilateral creditors to resolve all concerns that have arisen up to the new Board meeting date of 11 January 2024.β he added.
How much will Ghana receive under the IMF program?
Ghana is expected to receive approximately $3 billion under the IMF program.
According to an official IMF Ghana release, the IMF Executive Board on May 17, 2023 approved a SDR 2.242 billion (approximately $3 billion) 36-month Extended Credit Facility (ECF) agreement for Ghana.
This decision allows for an immediate payment of $600 million, equivalent to SDR 451.4 million. The remainder will be disbursed in six-monthly installments, subject to a review of the program approved by the IMF’s Executive Board.
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