Finance Minister, Ken Ofori-Atta, has revealed that stalled infrastructure projects around the country funded by donors should resume in the coming weeks.

According to him, this is based on the agreement reached with Ghana’s bilateral creditors on the restructuring of the country’s debt.

The Finance Minister disclosed this on PM EXPRESS BUSINESS EDITION with host George Wiafe which will be aired this Thursday, January 18, 2024.

He argued that some of these donors will start advancing the necessary funds for stalled projects, as the government works to finalise negotiations with them on how to restructure their debts in the coming days.

The government is expected to sign a Memorandum of Understanding with the bilateral creditors in the coming days after a deal on restructuring the debt was reached.  

“Some of these donors have demonstrated their commitment to support the economy once issues around these debt restructuring are resolved” the Finance Minister added. 

Background

Some of Ghana’s donor partners and bilateral creditors were forced to suspend financing some infrastructure projects in the country, mainly due to concerns about the cutoff date for restructuring Ghana’s loans.

For instance, China which had over the years advanced a lot of funds to support projects in Ghana had raised concerns about the cutoff date for restructuring the country’s debts, as they pegged it at March 2020, instead of December 2022.

But during the month-long negotiations with the official creditors, the Paris Club, China and the other creditors finally agreed to December 2022 as the cutoff date for restructuring Ghana’s debt.

IMF cash disbursement and impact on economy

Speaking on PM EXPRESS BUSINESS EDITION, the Finance Minister said Ghana has done what it is supposed to do to ensure the country passes the first review under the IMF programme. 

“We are expecting the about $600 million to hit the Bank of Ghana’s account by next week”, the Finance Minister revealed.

The Finance Minister also disclosed that the second tranche of the IMF cash of $600 million will be advanced towards projects outlined in the budget.

This represents a departure from previous programmes, where all the cash disbursed under the IMF programme was directed towards supporting Ghana’s balance of payment needs.

 “We should not rule out the fact that these funds coming in will help the Bank of Ghana improve its reserves, a move that will help stabilise the Ghana cedis”.

The Finance Minister also said he expects other donors to respond accordingly, a move that might go a long way to help in the recovery of the economy.

“All these developments will go a long way to help in the recovery of the economy”, the Finance Minister asserted;

Mr. Ofori-Atta concluded that the government will complete all the necessary actions, by ensuring that it remains fiscally discipline in an election year.