The "good news" that the International Monetary Fund (IMF) board is expected to accept Ghana's program positions the nation for rapid economic growth and a step along the road of development, according to President Nana Addo Dankwa Akufo-Addo.
The difficulties and sacrifices the nation has had to make over the past year—"it may be that, at long last, we are going to see the recovery because, with the IMF's blessing, we are then in a strong position to make other arrangements that will help our economy get back into a strong place," he continued.
This was said by President Akufo-Addo on Friday, May 12, 2023, during a courtesy visit from the Catholic Bishops Conference to him at the Jubilee House in Accra.
By May 19, 2023, the IMF is expected to approve Ghana's US$3 billion program after the nation acquires financial guarantees from its foreign creditors.
The bishops were informed by President Akufo-Addo that "today is a historic day in the recent history of Ghana. The final obstacle to our agreement with the fund has finally been cleared, which is a relief following our numerous troubles with the IMF.
He stated that China and other members of the Paris Club met today to create the credit committee and to discuss Ghana's request. He continued, "And, in fact, I placed a very strong word behind the approval. It is therefore fortunate that you [bishops] should be present on this particular occasion.
He referred to the news as "good news," which implied that the board will likely convene on Wednesday and finally accept Ghana's proposal.
Committee
The Creditor Committee of the IMF, which is co-chaired by China and France, stated in a release dated May 12 that it had examined Ghana's macroeconomic and financial situation, including its long-term debt sustainability and its formal request for a debt treasury note. This was in response to the statement from the Creditor Committee for Ghana under the G20 Common Framework for Debt Treatments, which was released today.
It further said that the creditor committee was in favor of the planned IMF upper credit tranche (UCT) program for Ghana and its prompt implementation by the IMF Executive Board in order to meet Ghana's immediate financial needs.
In order to address Ghana's long-term financial demands, the statement added that the creditor committee "encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana."
According to the document, creditor committee members were committed to working with Ghana to negotiate the terms of restructuring their claims, which would then be finalized in a Memorandum of Understanding (MoU) in accordance with the "Common Framework for Debt Treatments Beyond the DSSI."
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