The International Monetary Fund (IMF) is conducting a thorough debt sustainability review with the Bank of Ghana and Ministry of Finance officials for a US$3 billion bailout program.
The government of Ghana is putting together a thorough post-Covid-19 economic blueprint, which would serve as the foundation for IMF negotiations, according to a statement from the ministry.
The program “seeks to construct a macro-fiscal path, anchored by important structural reforms and social protection, that provides debt sustainability and macroeconomic stability,” it stated.
The Ministry added that it is “optimistic about making progress in our discussions.”
As we work to expedite this process, the government “remains dedicated and shall continue to aggressively engage all stakeholders, both public and private.”
An IMF delegation is in Ghana till October 7 to continue talks with the government about policies and reforms that might be backed by a loan arrangement.
The IMF conference comes amid fears that Ghana is set to begin negotiations with domestic bondholders about restructuring its local-currency debt.
According to news sources, significant regional investors, regional banks and pension funds, are getting ready to have a conversation on debt restructuring.
This can mean delaying maturity dates and taking principle and interest payment reductions.
Ghana spent GH20.5 billion on debt servicing in the first half of the year, or 68 percent of tax receipts.
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