IMF deal: talks with bondholders and creditors largely positive – Amin Adam

Minister of Finance Dr. Mohammed Amin Adam has indicated that the government’s discussions with its external creditors, including bondholders, donors and other development partners, have been largely positive, with emphasis on the progress of Ghana’s economic recovery.

He, therefore, expressed optimism on reaching a Memorandum of Understanding (MoU) with the external creditors to facilitate the release of the third tranche of the ongoing credit facility program of the International Monetary Fund (IMF).

The Extended Credit Facility (ECF) provides medium-term financial support to low-income countries (LICs) with ‘persistent balance of payments problems’.

Ghana has received a total of $1.2 billion of the global lender’s $3 billion ‘rescue loans’.

Speaking to reporters at the end of the 2024 IMF Spring Meeting in Washington, DC, on Sunday, April 21, Dr. Amin Adam said he used the meeting to “consistently report on the progress” the country has made under the IMF program.

“Over the past week we have held bilateral meetings with our development partners, creditors, our bondholders, donors and other development partners, as well as with investors, and I can tell you that these discussions have largely been very positive for us. . I have consistently taken the opportunity at these meetings to tell the story of the progress we are making in Ghana in restoring macroeconomic stability and building resilience.”

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As part of measures to restore macroeconomic stability and debt sustainability, build resilience through the implementation of strong structural reforms and lay the foundation for stronger and more inclusive growth while supporting the poor and to protect the vulnerable, Ghana received approval from the IMF Board of Governors for the disbursement of $3 billion under the ECF programme.

IMF deal: government will be more aggressive towards external creditors – Finance Minister

However, the West African country must secure an MoU with its external creditors to complete the third assessment process by the global lender.

Over the years, the Fund has created a platform for policymakers and development partners to comprehensively discuss development and poverty reduction issues.

The 2024 Spring Meeting largely focused on economic recovery and building resilience, debt sustainability and climate change.

Meanwhile, a financial analyst, Mr Joe Jackson, has noted that Ghana is at risk of not receiving the third tranche of $360 million from the Bretton Wood Institution following reports that the country has failed to reach a debt deal with its external bondholders .

Reuters reported that Ghana has failed to reach a deal with two groups of bondholders to restructure $13 billion worth of international bonds.

In a post on his X platform, Mr Joe Jackson said: “Bad news for the economy. The IMF staff-level agreement on an additional $360 million for Ghana is at stake. Stability for the Cedi could be a mirage.”