A former Minister for Finance, Seth Terkper, has cast doubt on the government’s capability to shelter a deal with the International Monetary Fund (IMF) by the end of March.
This comes on the back of the government setting an ambitious target of getting a board level agreement with the IMF, by the end of March 2023.
President Nana Addo Dankwa Akufo-Addo, recently expressed optimism that the government is systematically fulfilling the terms of the staff-level agreement, reached with the IMF and is confident that it will secure a deal by the end of March.
With the successful process of the domestic debt exchange programme (DDEP) and the support received from other creditors, Nana Addo Dankwa Akufo-Addo was upbeat that Ghana would clinch the $3 billion bailout from the IMF to improve the country’s economic situation.
But speaking in an interview, Seth Terkper stated that Ghana still has sets of outstanding obligations and targets it must meet, before the board level agreement can be approved.
“As far as I know and from experience it may be difficult and the reason is, in that communication, there are conditions which involve the Domestic Restructuring and the External Debt Restructuring. We know that we have come to sign an agreement with the domestic debtors.
“Now as far as I know, with the external, we are in a negotiation with the Chinese and there isn’t any communication yet, I stand to be corrected with respect to other external creditors.”
Seth Terkper
He continued: “Notably, those institutions formed the committee, if you recall with respect to our external bonds. So, a precondition for a debt restructuring, I don’t think that we are within the eleven days from what I know of accomplishing it.”
Minority Supports Claims
The Minority in Parliament also supports claims that Ghana will not be able to secure the International Monetary Fund’s (IMF) board approval at the end of March 2023 contrary to prerogatives by the government.
The opposition party explained that the government has not been able to satisfy the financing assurances regarding the bailout, which includes the board documents. The Minority Leader, Dr. Cassiel Ato Forson, made this known during a debate on the State of the Nation Address.
“I am confident with the cooperation we’re receiving from members of the Paris Club and the People’s Republic of China, which has sent a delegation from China’s Exim Bank to Accra over the weekend, to meet with officials of the Ministry of Finance, we shall be able to go to the board of the fund to conclude finally the agreement by the end of March”.
Nana Addo Dankwa Akufo-Addo
But the Minority Leader said Ghana is not likely to clinch a deal with the IMF in March and would be lucky to get a deal in April.
“Mr. Speaker, our President said on authority that Ghana would get an IMF Board approval by the end of this month, I don’t know who is briefing our President, but Ghana will not be able to get an IMF Board approval by the end of this month because even the board documents are not prepared.
“We need to get China to give Ghana financing assurance and that they are ready to take a haircut and China has not agreed.”
Dr. Cassiel Ato Forson
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