Ghana Embassy in China commends Chinese president for role in approval of $3bn IMF bailout

The government of Ghana has commended the President of China, Xi Jinping, and his government for helping Ghana get the $3 billion bailout it was seeking from the International Monetary Fund (IMF) approved.

In a statement, issued by the Ghana Embassy in China, the government said that the intervention of China was critical to Ghana getting the IMF programme approved.

“Furthermore, the Ghana Embassy extends its profound gratitude to President Xi Jinping and the Chinese government for their vital support and prompt guarantee provided to the IMF on behalf of Ghana.

“This support was crucial in ensuring Ghana's eligibility to benefit from the aid plan, particularly in light of the recent commitment from creditor countries, led by France and China, to engage in debt restructuring negotiations,” parts of the statement read.

The government also commended the Minister of Finance, Ken Ofori-Atta, for his leadership in the engagement with China.

“The Ghana Embassy in Beijing is deeply grateful to Minister Ken Ofori-Atta for his exemplary leadership and tireless efforts in engaging with the Chinese government. His dedication and unwavering commitment to Ghana's economic development were instrumental in fostering meaningful collaboration, which contributed to securing the $3 billion Extended Credit Facility (ECF) for Ghana,” it said.

Background:

The Executive Board of the IMF unanimously approved the $3 billion bailout for Ghana at a meeting Wednesday [May 17, 2023] in Washington.

$600 million out of the $3 billion loan was disbursed on the day of the approval of the bailout and $350 million would be disbursed every six months for the three-year programme.

Earlier, Managing Director of the IMF, Kristalina Georgieva, had expressed optimism, that the swelling goodwill that Ghana was getting from the international community, including its creditors could guarantee the approval of the loan.

She added that her outfit was pushing the bilateral creditors to quickly provide the financial assurance needed for the board to approve the deal.

Prior to this, Ghana had completed all prior actions necessary to receive support for its economic recovery programme, the International Monetary Fund (IMF).

Read the full statement below:

FOR IMMEDIATE RELEASE

GHANA EMBASSY IN CHINA ACKNOWLEDGES CHINA'S INDISPENSABLE SUPPORT IN OBTAINING $3BN IMF LOAN

Accra, Ghana - 22nd May, 2023

The Ghana Embassy in China, in collaboration with the Ghana Ministry of Finance, wishes to express its utmost appreciation for the invaluable support provided by China in obtaining a $3 billion loan for Ghana. This significant milestone was achieved on the 19th of May 2023, with China playing an indispensable role in facilitating the approval of this loan.

Recognizing China as Ghana's largest bilateral creditor, the Ghana Mission in Beijing initiated discussions with the host Ministry of Foreign Affairs in March 2023. These discussions aimed to secure China's assistance in debt management and prompted an urgent visit by Ghana's Finance Minister, Ken Ofori-Atta.

Despite initial challenges, extensive negotiations and fruitful discussions were held between the Ghanaian delegation and key Chinese officials, including China's Finance Minister, Vice Minister of Foreign Affairs, Vice Minister of Commerce, and executives from various Chinese financial institutions. These engagements were crucial in laying the foundation for fruitful cooperation and support from China.

From the 22nd to the 24th of March 2023, the Ghana Embassy hosted Minister Ken Ofori-Atta and an eight-member delegation from the Ministry of Finance and the Ministry of Foreign Affairs and Regional Integration. These bilateral engagements focused on Ghana's debt restructuring program and sought China's participation in the debt treatment program under the G20 Common Framework Initiative. The discussions emphasized the shared commitment of both nations towards Ghana's short, medium, and long-term economic recovery.

The Ghana Embassy in Beijing is deeply grateful to Minister Ken Ofori-Atta for his exemplary leadership and tireless efforts in engaging with the Chinese government. His dedication and unwavering commitment to Ghana's economic development were instrumental in fostering meaningful collaboration, which contributed to securing the $3 billion Extended Credit Facility (ECF) for Ghana.

Furthermore, the Ghana Embassy extends its profound gratitude to President Xi Jinping and the Chinese government for their vital support and prompt guarantee provided to the IMF on behalf of Ghana. This support was crucial in ensuring Ghana's eligibility to benefit from the aid plan, particularly in light of the recent commitment from creditor countries, led by France and China, to engage in debt restructuring negotiations.

The loan, endorsed by the IMF board, falls under the Extended Fund Facility and spans 36 months. It aims to restore macroeconomic stability, achieve debt sustainability, and implement comprehensive reforms to enhance resilience and foster inclusive growth in Ghana. The program emphasizes fiscal consolidation, financial sector stability, inflation control, rebuilding foreign exchange reserves, and an ambitious program of structural reforms to revitalize private sector-led growth.

In line with China's commitment to Ghana's medium- and long-term economic recovery, discussions are underway to develop a joint proposal. This proposal, guided by the Ministry of Finance and the Ghana Embassy in Beijing, will encompass various areas of cooperation, including financial support, debt restructuring, investment promotion, trade facilitation, exchange of technical expertise, and knowledge/information sharing. The primary objective is to accelerate Ghana's economic stability, drive sustainable growth, and uplift the prosperity of the nation.

The Ministry of Finance, in collaboration with the Ghana Embassy and other stakeholders, will continue to work diligently to finalize the collaborative proposal for further consideration.

The Ghana Embassy in China would like to emphasize the significance of this milestone achievement and express its gratitude to China for its unwavering support. This collaborative endeavor highlights the importance of international cooperation in addressing economic challenges and promoting global prosperity. Ghana remains committed to further strengthening its relationship with China and looks forward to a continued partnership that will bring mutual benefits and contribute to the well-being of its citizens.

For media inquiries, please contact:

Abdul Ganiyu Alhassan
Head of Information
Ghana Embassy in China
Phone: +233 244710002
Email:abdul.ganiyualhassan@isd.gov.gh or beganiyu@gmail.com

Below is another press release on the ambassador's contribution

"**Collaboration Proposal for Ghana Embassy and IMF Secures Approval, Ambassador Dr. Winfred Nii Okai Hammond Acknowledged by Finance Minister and Vice President.

The recent approval of the $3 billion Extended Credit Facility (ECF) by the International Monetary Fund (IMF) board has garnered immense appreciation for Ambassador H.E. Dr. Winfred Nii Okai Hammond from not only Ghana's Finance Minister but also from Vice President Dr. Mahamudu Bawumia. The ambassador's leadership in engaging with the Chinese government and subsequent involvement played a pivotal role in securing the IMF bailout for Ghana.

The Finance Minister, along with Vice President Dr. Mahamudu Bawumia, expresses profound gratitude to Ambassador H.E. Dr. Winfred Nii Okai Hammond for his instrumental role in leading the engagement with the Chinese government. The ambassador's efforts paved the way for meaningful collaboration, which contributed to the successful approval of the IMF bailout for Ghana. Both the Finance Minister and the Vice President acknowledge and appreciate Ambassador Hammond's unwavering commitment to Ghana's economic development.

The approved staff-level agreement, reached on the 17th of this month, demonstrates Ghana's steadfast dedication to implementing economic policies and reforms aimed at restoring macroeconomic stability, ensuring debt sustainability, and fostering inclusive recovery. With the assistance of the IMF funding, valued at approximately $3 billion over a three-year period, Ghana is poised for a significant economic transformation.

As Ghana prepares to embark on its economic transformation journey, the Finance Minister and Vice President extend their profound gratitude to Ambassador H.E. Dr. Winfred Nii Okai Hammond for his pivotal role in leading the Chinese government delegation and subsequent engagements. The ambassador's tireless efforts have been instrumental in facilitating Ghana's successful collaboration with the IMF, ultimately leading to the approval of the $3 billion bailout.

The collaborative proposal between the Chinese government, the Ghana Embassy in China, and the IMF, which seeks to strengthen Ghana's economic reforms, is currently being refined and will be submitted for consideration. This proposal encompasses key areas of cooperation, including financial support, debt restructuring, investment promotion, trade facilitation, and technical expertise and knowledge sharing.

The Finance Minister, Vice President, in collaboration with the Ghana Embassy and other stakeholders, will continue to work diligently to finalize and present the collaborative proposal to the Chinese government and the President of Ghana for further consideration. The proposal aims to harness the combined strengths of the Chinese government, the Ghana Embassy, and the IMF to accelerate Ghana's economic stability, drive sustainable growth, and uplift the nation's prosperity.

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For media inquiries, please contact:

Abdul Ganiyu Alhassan
Head of Information
Ghana Embassy in China
Email: [Abdul.ganiyualhassan@isd.gov.gh or beganiyu@gmail.com]
Phone: [+233 244 710002]"

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