IMF to engage BoG on a comprehensive debt sustainability analysis
A comprehensive debt sustainability analysis by the Bank of Ghana with the International Monetary Fund is said to be in the offing as part of moves for the $3 billion support program, the Finance Ministry has revealed.
The statement endorsed by the Public Relations Unit of the Finance Ministry further indicates the emergence of comprehensive post-Covid-19 programs by the Government of Ghana which will be part of the basis for the IMF negotiations.
“The programme seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability, underpinned by key structural reforms and social protection.”
The ministry has expressed some glimmer of hope in making headway in the negotiations with the IMF.
Also, it has assured of its unwavering commitment to involve stakeholders both in the public and private sectors in a bid to quicken the process.
A team from the IMF has touched down in Ghana and will be here to continue the deliberations with the government on plans that could be supported by the loan government wants to acquire.
This discussion with the IMF comes off amid fears of commencing talks with local bondholders on possible debt restructuring by the government of Ghana.
Information also suggests that major local investors, including local banks and pension funds, want to deliberate on a debt reorganization.
Extension of maturities and haircuts on principal and interest payments could form part of the discussion.
Currently, Ghana’s debt-service costs in the first half amounted to GH¢20.5 billion, equivalent to 68 per cent of tax revenue.
Read the statement below.
