Dr. Theo Acheampong – an Economist and Political Risk Analyst, has disclosed that government’s ambitious goal of securing an IMF bailout by the end of March may not be realized as projected.
Due to negotiations with commercial creditors, the economist noted that the country is more likely to secure Board approval for an IMF bailout by the end of April or May this year.
The Ghanaian government has been facing a challenging time dealing with its external debt. The country’s external debt stock stands at $29bn, of which commercial creditors hold a significant portion of around $13bn, while multilateral institutions hold approximately $8bn, or 30% of the country’s external debt stock.
According to Dr. Acheampong, the negotiations for external debt restructuring with commercial creditors can drag on for a long time, making it difficult to meet the March deadline set by the government.
While the government had hoped to restructure its loans with China to help attain the IMF bailout by March, Dr. Acheampong revealed that Ghana’s debt to China, which stands at about $1.9bn, forms only a small portion of the country’s total external debt stock.
The economist therefore communicated that China is not a significant threat to Ghana’s ability to secure the IMF bailout program.
Putting across suggestions, Dr. Acheampong averred that for the government to effectively reduce its external debt stock and secure the needed bailout program, it should focus on its biggest creditors – the commercial creditors, who hold a significant portion of the country’s debt, adding that: “Being able to restructure their debt will be crucial to the government’s efforts to secure the IMF bailout.”
Furthermore, Dr. Acheampong recommended that for an effective negotiation with external creditors, the government should have all external creditors, including the Paris Club, China, commercial creditors, and IMF/World Bank at the negotiating table simultaneously. “This would enable the government to negotiate more effectively and expedite the process of securing the necessary bailout program,” he said.
Afriyie Akoto Prays For A Successful IMF Bailout, Warns It Should Be The Last
Meanwhile, the immediate past Minister of Food and Agriculture – Hon. Dr. Owusu Afriyie Akoto has stated that it has been his prayer for the International Monetary Fund (IMF) Board to approve the US$3 billion financial bailout program that Ghana is seeking to turn around the economy.
However, the former agriculture minister during a discussion with a group of Editors and Senior Journalists in Accra disclosed that it was high time Ghana stopped going to the IMF whenever its economy is in distress, noting that building a resilient economy with agriculture as its backbone is the way to go.
Ghana has requested a bailout from the IMF for the 17th time.
According to Hon. Dr. Afriyie Akoto, agriculture, especially cocoa, has been the number one cash crop in sustaining the Ghanaian economy, emphasizing that the potential in other agriculture initiatives has shown that when exploited to the core, will assist in turning around the economy and sustain it without going to the IMF again.
“I will deliver a public lecture on ‘The Future of the Economy of Ghana’ at the University of Professional Studies, Accra (UPSA), where I will share more insights into building the agricultural into a bedrock for financing the development of other sectors of the Ghanaian economy.”
Hon. Dr. Owusu Afriyie Akoto
Speaking further, Hon. Dr. Akoto who has set his eyes on the flag bearer position of the New Patriotic Party (NPP) but yet to officially declare his intention to contest, noted that at the core of his vision for Ghana when given the nod to lead the UP Tradition and subsequently becomes the President of the Republic, is the prioritization of public resources to the agricultural sector.
