https://www.myjoyonline.com/finance-minister-optimistic-ghana-will-reach-a-deal-with-china-by-next-week-for-fund-to-approve-600m-bailout-package/-------https://www.myjoyonline.com/finance-minister-optimistic-ghana-will-reach-a-deal-with-china-by-next-week-for-fund-to-approve-600m-bailout-package/
Finance Minister, Ken Ofori-Atta

The Finance Minister, Ken Ofori Atta, has admitted concerns about the cut-off date for the external debt restructuring, saying, it is delaying the International Monetary Fund Board meeting on Ghana.

The Fund has been forced to reschedule its meeting to approve the second tranche inflow of $600 million on two occasions this month. This is due to China’s posture, pushing December 2022 as the new date to restructure Ghana’s loans.

But addressing journalists, Mr. Ofori-Atta, expressed optimism a deal will be reached by next week for the board meeting to take place.

“One of the key issues is the cut-off date and ensuring that there is comparability of treatment which affects each country’s liabilities or credit that is in our country. But am hopeful we will be able to get there”.

“I hope that by the end of next week, we will have what we need so that the Fund’s Board can sit”, he added.

Reacting to this in an interview on Business Live on Joy News, Finance Lecturer who is also a visiting Professor at GIMPA Business School, Prof. Lord Mensah expressed worry over the delays by China in reaching an agreement with Ghana on the debt restructuring, saying, it could have serious implications on the exchange rate.

 “I am worried, Ghana is desperately in need of the $600 million inflows. If we don’t get it the consequences on our exchange rate and the economy in general could be dire. We all pray we can get the buy-in of China for the restructuring to go on”. 

He added that it could even delay the IMF board’s approval of Ghana’s next tranche of $600 million.

Meanwhile, talks between Ghana and its creditors to rework the nation’s bilateral debt which would unlock $600 million from the IMF are deadlocked.

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DISCLAIMER: The Views, Comments, Opinions, Contributions and Statements made by Readers and Contributors on this platform do not necessarily represent the views or policy of Multimedia Group Limited.