Ghana’s finance minister, Ken Ofori-Atta, has announced that the country has received assurances from its external creditors, China and France, on the memorandum of understanding (MoU) for restructuring its external bilateral debts. He made this statement while interacting with the media at Morocco’s annual International Monetary Fund/World Bank meeting.
According to Ofori-Atta, Ghana has met with the central bank governor of China and did not perceive any opposition or reluctance to participate positively in the debt restructuring process. He also revealed that China has extended similar courtesy to other countries facing debt challenges, such as Zambia, Suriname, and Sri Lanka.
Ofori-Atta added that France is willing to cooperate with Ghana on the debt restructuring MoU. He said that France has been a strong partner of Ghana and has supported its development agenda over the years.
The finance minister said that the debt restructuring MoU is part of Ghana’s economic program, which is supported by a $3 billion extended credit facility arrangement from the IMF. The program aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth.
Ofori-Atta said securing timely debt restructuring agreements with external creditors will be essential for successfully implementing the new IMF program. He said Ghana is also negotiating with private creditors and Eurobond holders on restructuring their debts.
Ghana is one of the African countries that have been hit hard by the global economic downturn and the effects of climate change. The country defaulted on a Eurobond payment earlier this year and has been seeking debt relief from its creditors under the G20’s Common Framework.
The finance minister expressed optimism that Ghana will be able to overcome its current challenges and achieve its long-term development goals. He said Ghana is committed to implementing sound policies and reforms to enhance social protection, improve governance and accountability, strengthen policy frameworks, and tackle climate change.
He also called on the IMF to do more to support developing countries in addressing their economic and social needs. He said the IMF should have the requisite mandates, financing, and governance models to deliver transformative impact for all countries.
Source: GhanaWeb
