Mr. Stéphane Roudet, the International Monetary Fund’s mission Chief to Ghana, has disclosed that the IMF is eager to help the country maneuver its way out of the current economic challenges it is facing.
Speaking in an interview today December 14, Mr. Roudet noted that the Staff Level Agreement which was achieved at the appropriate time, is a clear evidence that the IMF is willing to redeem Ghana from the economic crisis.
Ghana acquired a staff-level agreement with the International Monetary Fund for a $3 billion bailout on December 13, an important step in Ghana’s plans to restructure its unsustainable debt.
“There is an eagerness to help Ghana, everyone is aware of the hardship that the Ghanaian people are going through and we want to help.”
Mr Roudet
Mr Roudet opined that it was important for the Akuffo Addo led government to announce a debt exchange programme ahead of reaching the Staff Level Agreement to assure the IMF that the country’s debt was on a sustainable path which will provide relief for creditors and gain their confidence.
To Mr Roudet, the government was committed to a wide-ranging economic reform programme, which paves the way for the IMF board to hopefully approve the $3 billion bailout early 2023.
Mr. Stéphane Roudet further noted that the Fund is not concerned about the Government’s domestic debt exchange programme. He emphasized that the Fund does not instruct governments or member countries on how to restructure their debts but only plays an advisory role until the country’s debts are sustained.
“We are very concerned about the overall picture, making sure that eventually, the strategy will deliver. But the details of how this debt restructuring is being implemented; what type of debts are being restructured, the relationships with creditors whether domestic or external, the parameters and what type of relief the Government will be seeking from the different creditors, all of that is very much for the Government to determine, and they are all sovereign decisions.”
Mr Roudet
Partners and Creditors Assurance Needed To Securing $3bn IMF Loan Programme
Meanwhile, Ghana needs assurances from its creditors and partners that it will meet its debt obligations to secure the approval of the Management and Executive Board of the International Monetary Fund (IMF) for the $3 billion loan-support programme.
The IMF Mission Chief for Ghana, made this remark at a press briefing in Accra after Ghana and the Fund reached the Staff-Level Agreement.
“What is necessary for us to be able to present that programme request to the Board is assurances from Ghana’s partners and Ghana’s creditors that the program is fully financed.
“So, as soon as we have assurances from creditors that is the case, when it’s sufficient for them to be made on that front, we will be able to present the programme to our Board.”
Mr Roudet
Mr Roudet indicated that the Ghanaian authorities have committed to a wide-ranging economic reform.
Mr Ken Ofori-Atta, the Finance Minister, revealed the role of creditors in securing the loan and said; We can only get to the IMF Board if we get sufficient commitment from our creditors in support of the debt operation.
Hon Ofori Atta stated that the government would hold on the positive reaction of the announcement of reaching the Staff Level Agreement with the IMF, “to the very moment when the IMF Executive Board approves the programme request.”
The loan support programme is aimed at restoring Ghana’s macroeconomic stability and debt sustainability to protect the vulnerable, preserve financial stability, and lay the foundation for strong and inclusive recovery and growth.
The $3bn, when secured, would be used to support the implementation of the Government’s three-year Enhanced Domestic Programme, restore macroeconomic confidence and alleviate the plight of Ghanaians amid the current economic hardship.
Mr Roudet indicated that the Fund-support programme would help improve the management of public enterprises and tackle structural challenges in the energy and cocoa sectors to propel sustainable and inclusive growth.
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