July 21, 2024
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Ghana has done its part; we’re now waiting for external creditors – IMF Africa Boss

The Director at the African Department of the International Monetary Fund (IMF), Abebe Aemro Selassie has indicated that Ghana has taken the necessary measures to secure the much-talked-about financing assurance from its external creditors.

He said the fund is now waiting on the bilateral creditors to respond accordingly.

Mr Selassie was responding to questions from Journalists after the release of Africa’s Regional Outlook Report on the sidelines of the Annual IMF/World Bank meetings in Marrakesh, Morocco.

The Director of the African Department of the IMF observed that action is also needed on the creditors’ side.

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“I have to tell you that whereas it took  something like nine months or more for Zambia to get the official creditor committee to be created, in Ghana’s case, it was fairly rapid.”

Mr Abebe added that “Ghana has done its fair share and it’s for the creditors to take steps.”

The Director at the IMF Department disclosed that “we’re not going to be asking the government to do more adjustment because creditors haven’t asked either.”

“We will provide all the information necessary, so creditors can move, allowing us to go to the Board as soon as possible,” Mr. Abebe Selassie added.

Mr. Abebe Selassie was hopeful that ongoing discussions amongst official creditors would also expeditiously allow Ghana to conclude the upcoming review.

He said the recent mission reached an agreement with the government on policies that are needed to tackle the most recent issues.

Ghana’s First Programme Review and IMF Board Meeting

On October 6, the IMF announced that its staff had reached a staff-level agreement with Ghana on the first review of the Extended Credit Facility secured earlier this year.  

This was after the team led by Mission Chief For Ghana, Stephane Roudet discussed progress on reforms and the authorities’ policy priorities in the context of the first review of Ghana’s three-year programme under the Extended Credit Facility.

Ghana is expected to secure this Memorandum of Understanding from these Bilateral External Creditors to help the IMF board approve Ghana’s First Programme Review and disburse some $600 million in November 2023.

The IMF Mission Chief for Ghana told Joy Business in an interview in Accra that the fund itself is part of these creditor committee meetings, so as soon as a deal is reached, the IMF board will move to approve the second tranche of $600 million.

IMF Board is expected to meet on Ghana’s programme on November 22, according to information picked up by Joy Business from persons with knowledge of the country’s programme in Washington DC, USA.  

Ghana’s Performance under the IMF Programme

The Director of the African Department at the IMF has described Ghana’s performance under the IMF programme as satisfactory.

He said, “We are very pleased with the progress that has been made in implementing the programme since it was approved by the Board.”

He added that “quite a number of important steps had been taken, which are the process of arresting the very large macroeconomic imbalances that were the root causes behind the recent crisis and beginning to correct them.”

Supporting Ghana to fight corruption

Government has requested the IMF to support Ghana and institute some measures as part of its broader programme to fight corruption.

When asked about the request, this is what Mr. Abebe Selassie had to say.

“On the governance diagnostic report, I think the request has been made. I’m not sure of where we are in terms of being able to provide that TA, but as soon as we have the resources, we will do that. And it’s just a matter of time, I believe.”

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