IMF Managing Director Kristalina Georgieva is confident that the International Monetary Fund Executive Board will quickly provide the final authorization to Ghana's bailout request.
At the present World Bank/IMF Spring Meetings in Washington, D.C., Ms. Georgieva stated that the growing support that the nation was receiving from the international community, including its creditors, was the reason for her optimism.
Ms. Georgieva told reporters on Thursday that her organization was pressing the bilateral creditors to provide the financial assurance needed for the board to approve the deal, according to Graphic Online's Maxwell Akalaare Adombila, who is covering the World Bank/IMF Spring Meetings in Washington, D.C., USA.
Ghana obtained staff-level agreement (SLA) for the $3 billion request in December, but efforts to proceed across the finishing line have been sluggish because of disagreements between the two sets of creditors over the specifics of the debt restructuring process.
Since the beginning of the year, Ghana has experienced a severe fall in its cedi currency, more than 40% inflation, and rising debt.
This month, IMF representatives visited Ghana's capital city of Accra to discuss support for the nation's reform initiatives with the government.
Ken Ofori-Atta, Ghana's finance minister, stated at a news conference on Tuesday that his country was "committed to the program and will work toward meeting the demands." Taking on price increases, strengthening the currency, and restoring economic stability, he claimed, are all benefits of the accord.
According to Ofori-Atta, the IMF board would likely approve the proposed three-year loan "early next year."
"We hope that this is the final [support required]." This is the reason the program will be so effective, he claimed.
According to him, Ghana's reforms are aimed at strengthening public finances while safeguarding the weak. The adjustments include developing a medium-term revenue strategy, strengthening tax compliance, promoting financial transparency, and enhancing the management of public industries.
A debt restructuring plan was also unveiled by Ghana, who also "committed to strengthening social safety nets, including reinforcing the existing targeted cash-transfer programme for vulnerable households and improving the coverage and efficiency of social spending," according to Roudet.
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