The Deputy Minister of Finance and Member of Parliament for Ejisu in the Ashanti Region, Lawyer Dr John Ampontuah Kumah, has revealed significant progress in the country’s fiscal prudence and debt restructuring efforts.
Lawyer John Kumah in a Facebook post on Friday, January 19 2024 indicated that the unanimous approval of Ghana’s request for debt treatment under the G-20 Common Framework for Debt Treatment Beyond the Debt Service Suspension Initiative (CF-DSSI) has set the stage for a sustainable economic growth for the country.
According to him, over the past week, Ghana witnessed a milestone as the Official Creditor Committee (OCC), comprising Ghana’s bilateral creditors, unanimously approved the country’s debt treatment request.
He noted that such a positive decision which was made under the auspices of the Paris Club, signifies a collaborative effort to steer Ghana’s public debt trajectory towards moderation and away from the high risk of debt distress.
“The past week was marked by a significant development in the public debt trajectory following the unanimous approval of Ghana’s request for debt treatment under the G-20 Common Framework for Debt Treatment Beyond the Debt Service Suspension Initiative (CF-DSSI).
“The government has been combining both fiscal prudence and debt restructuring measures to contain growth in public debt with the view of bringing the debt levels to moderate debt level from high risk of debt distress”.
Lawyer John Ampontuah Kumah
Again, the Deputy Minister of Finance while acknowledging the commendable decision of the Official Creditor Committee expressed caution, stressing on the need for government to put in more effort to stabilize the country’s economy.
Lawyer John Kumah further posited that the Official Creditor Committee’s approval of the country’s debt treatment request opens the door for an International Monetary Fund (IMF) Executive Board meeting to consider the Staff Level Agreement (SLA) reached between the Ghanaian government and the IMF Mission during the first review mission of the Extended Credit Facility (ECF) Programme.
Ghana To Receives Second Tranche Of US$600.00 Million
According to him, upon a successful IMF Executive Board meeting, the disbursement of the second tranche of US$600.0 million would be effected which is in line with the disbursement arrangement of the Extended Credit Facility (ECF) Programme.
Furthermore, the Ejisu Member of Parliament revealed that the Official Creditor Committee’s generosity will also facilitates the finalization of the Memorandum of Understanding (MoU) to be signed between the Government of Ghana (GoG) and the Official Creditor Committee potentially restarting the implementation of foreign-financed projects and programs that are currently delayed at various stages.
Moreover, Lawyer John Kumah highlighted the background to Ghana’s economic recovery efforts, referring to President Nana Addo Dankwa Akufo-Addo’s directive on July 1, 2022, to request an IMF program under the Extended Credit Facility (ECF) Programme.
According to him, the subsequent approval of the Extended Credit Facility (ECF) Programme which was named ‘Post COVID-19 Programme’ for Economic Growth dated May 17, 2023, aimed to address challenges Ghana faced arising from the impact of the COVID-19 pandemic and domestic vulnerabilities.
“An essential prerequisite for the IMF Program was the confirmation that Ghana’s public debt was on a sustainable trajectory. The successful completion of the Domestic Debt Exchange Programme (DDEP) in December 2022, with over 90 percent participation, and the OCC’s approval of bilateral debt treatment have played crucial roles in this regard”.
Lawyer John Ampontuah Kumah
Commenting on Ghana’s economic prospect for the 2024, Lawyer John Kumah emphasized the importance of controlling Ghana’s debt trajectory, especially considering the projected sluggish global economic growth with a forecasted rate of only 2.4 percent.
He noted that the borrowing costs for developing economies are expected to rise, necessitating comprehensive measures to address debt unsustainability.
Additionally, Lawyer John Kumah indicated that the year 2024 holds significant geopolitical events in the world as over 70 countries are scheduled to hold elections in which the outcomes of such elections, especially in influential nations like America, Mexico, India, and Russia, could have profound implications for global democracy and multilateralism, potentially affecting Ghana’s economic landscape.
Lawyer John Kumah however, reassured Ghanaians of the government’s optimism and determination to build on the achievements made under the IMF Programme to ensure that job creation, youth development, and empowerment initiatives will remain top priorities to the government.
He thus urged all Ghanaians to continue supporting the government’s efforts as the nation navigates a new path in public administration and management, emphasizing sustainability as a key focus.
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