Ghana is on the verge of finalizing a Memorandum of Understanding (MoU) with its bilateral creditors, marking a significant step in the debt restructuring process.
Managing Director of the International Monetary Fund (IMF), Kristaline Georgieva, expressed optimism about the progress during a roundtable engagement in Accra.
Georgieva stated, “There is very tangible progress made towards signing a Memorandum of Understanding with bilateral creditors” the Managing Director of the IMF stated.
The IMF Director’s remarks came during her two-day working visit to Ghana, where she emphasized the importance of reaching a fair deal with Eurobond holders and private creditors.
She cautioned that Ghana’s three bailout packages could be at risk if a satisfactory restructuring agreement isn’t reached with Eurobond holders.
Georgieva’s meeting with President Akufo-Addo underscored the critical nature of the ongoing negotiations, referencing potential setbacks similar to Zambia’s if a balanced deal isn’t achieved.
“Ghana is indeed benefiting from the experiences of countries that have gone for debt restructuring under the common framework. The sooner we do a great deal the better for the country. To do a deal that may actually reverse progress is not going to be good for the country. You cannot allow the Eurobond creditors to twist your arm. Why? Because you have done a very painful domestic debt restructuring, you have agreed in principle on debt restructuring with the official creditors of Ghana under certain conditions. The deal with the Eurobond has to be a fair deal vis-a-visa what was already done otherwise we risk seeing what happened in Zambia,” she stated.
Ghana is facing the task of restructuring around $13 billion owed to Eurobond holders.
Reflecting on Ghana’s performance under the IMF Programme, Georgieva acknowledged the country’s success in meeting key targets related to inflation rate and economic growth.
“Because we are climbing a mountain and we are doing quite well, we are not yet at the top, we need to keep climbing so there’s radiation of responsibility we need to complete with private creditors but complete defending the interest of the country.”
She praised Ghana’s decision to seek IMF support, noting that the current developments validate the wisdom of stabilizing the economy through international cooperation.
As negotiations continue, the focus remains on securing a fair deal that benefits Ghana while upholding the country’s economic stability and growth prospects.