An Economist, Professor Godfred Bokpin, has spoken about the significance of Ghana's indebtedness to China and its potential impact on the country's access to the International Monetary Fund’s (IMF) support.

Speaking on JoyNews’ PM Express, Professor Bokpin argued that Ghana might be "majoring in the minors," since the country’s debt owed to China is not significant enough to impede the nation's progress.

“$1.9 billion out of the total external debt of $22.4 billion should not be the reason why people should suffer unnecessarily,” he told host Aisha Ibrahim on Monday, October, 10, 2023.

He urged the IMF and western countries to reconsider their stance on Ghana's external debt restructuring, cautioning against the potential weaponization of the debt relief arrangement for geopolitical and geo-economic gains at the expense of the struggling nation.

“And I think the IMF or the West, should take another look at it. Otherwise, they may be weaponizing this whole debt relief arrangement in a way that inures more to their benefit within the global geopolitics and geo-economics fragmentation rather than the country they are seeking to help,” he added.

Ghana is eagerly anticipating the arrival of its second tranche of financial support from the IMF. However, the country faces a hurdle as it is mandated to restructure its external debt as a prerequisite for the aid package. Failure to comply with this requirement could potentially lead to a delay in the disbursement.

Since the Covid-19 pandemic, Ghana has been grappling with the economic fallout which has exacerbated its fiscal challenges and elevated the importance of external financial support.

The IMF's assistance is therefore vital for stabilising the country's economy, addressing budget deficits, and mitigating the adverse effects of the pandemic on citizens.

On Wednesday, May 17, the first tranche – $600 million – of the $3 billion was credited to Ghana’s bank account.

The funds was used for the balance of payment and budget support, as well as to stabilise the foreign exchange rate and control inflation.