Ofori-Atta : Ghana is on track to receive IMF approval.

Ken Ofori-Atta

The Paris Club, a group of bilateral creditors that helps with workable solutions to payment problems faced by debtor nations, will form an Official Creditor Committee this week to look into Ghana’s request for financial assurances.

The assurances will allow the government to submit its plans for approval to the International Monetary Fund (IMF) Board along with debt restructuring and additional strategic loans.

In an interview with the Daily Graphic, Finance Minister Ken Ofori-Atta explained that the creation of the committee and the financial guarantees were necessary to allow the country to present its proposal to the IMF board soon after the Spring Meetings.

The nation was firmly on track for IMF Board approval, the finance minister added.

A high-level Ghanaian delegation is being led by Mr. Ofori-Atta and Dr. Ernest Addison to the World Bank and IMF Spring Meetings taking place in Washington, D.C., from April 10 to 16.

The group will meet with China, other bilateral creditors, and members of the Paris Club in between meetings.

Mr. Ofori-Atta will preside over the V20 Inter-Ministerial debate on green funding for countries that are susceptible to climate change, among other things on the agenda for the Spring Meetings.

The finance minister will also go to conferences on redesigning the world’s financial system to encourage geographic inclusion.

Optimism

“We will meet with the Paris Club and other bilateral creditors during the World Bank and IMF Spring Meetings.

According to Mr. Ofori-Atta, they would also be meeting separately to discuss Ghana’s request for finance assurances.

The minister continued by saying that China had made clear that it intended to attend the crucial meeting, and that this was a crucial milestone in our journey for IMF Board approval.

“We thus anticipate, believe in, and are hopeful that the meeting will lead to the creation of an Official Creditor Committee and the delivery of financing assurances to the IMF.

With that secured, we would be prepared to request clearance from the IMF Board, Mr. Ofori-Atta emphasized.

Mr. Ofori-Atta said that the government, Parliament, and the people of Ghana had worked incredibly hard and made significant sacrifices to bring “us where we are now” when asked about the status of additional tasks that needed to be finished before board approval.

Approvals

The government is now in a position to collect an additional GH4 billion yearly, which the finance minister described as being highly substantial to improve the country’s fiscal condition. Important revenue measures were adopted by Parliament on Friday, March 31, this year.

Mr. Ofori-Atta thanked the Parliament for its consistent support of the nation and the program for economic recovery.

In fact, Mr. Ofori-Atta said, “We have collectively demonstrated a unity of purpose that is inspiring since the presentation of the 2023 Nkabom Budget.”

We were also able to reach a staff level agreement with the IMF, and the domestic debt exchange program was completed successfully with a participation percentage of 85%, the official continued.

Mr. Ofori-Atta said the government has also engaged with its bilateral relations and gained their backing.

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