Finance Minister Ken Ofori-Atta has announced that stalled infrastructure projects across Ghana, funded by donors, are set to resume in the coming weeks.
The restart is based on agreements reached with Ghana’s bilateral creditors regarding the restructuring of the country’s debt.
Ofori-Atta shared this information on PM EXPRESS BUSINESS EDITION with host George Wiafe, scheduled to air on Thursday, January 18, 2024.
The Finance Minister explained that as negotiations with donors progress, some will begin disbursing necessary funds for the halted projects.
A Memorandum of Understanding is expected to be signed with bilateral creditors in the coming days after reaching a deal on debt restructuring.
“Some of these donors have demonstrated their commitment to support the economy once issues around these debt restructuring are resolved” the Finance Minister added.
Ofori-Atta highlighted the commitment of some donors to support Ghana’s economy once debt restructuring matters are resolved.
The Finance Minister addressed concerns from certain donors, such as China, regarding the cutoff date for debt restructuring, noting that an agreement was reached with the Paris Club and China, setting December 2022 as the cutoff date.
Regarding the International Monetary Fund (IMF) program, Ofori-Atta shared that Ghana has fulfilled requirements for the first review, anticipating a disbursement of about $600 million to the Bank of Ghana next week.
He revealed that the second tranche of the IMF cash would be directed toward projects outlined in the budget, indicating a shift from previous programs where all funds were focused on balancing payments.
Ofori-Atta emphasized that the incoming funds would enhance the Bank of Ghana’s reserves, stabilizing the Ghana cedis. He expressed optimism about similar responses from other donors, contributing significantly to the country’s economic recovery.
The Finance Minister concluded by assuring that the government would maintain fiscal discipline during an election year, completing necessary actions for economic stability.
tigpost.co
