No additional adjustments needed for deal with Ghana - IMF

Abebe Selassie, Director of the African Department at the International Monetary Fund (IMF), has confirmed that the IMF will not request further adjustments from the Ghanaian government.

This announcement comes amidst ongoing discussions with official creditors, which are expected to lead to the release of the third tranche of funds.

Speaking in a Q&A session with the media at the World Bank Bank, IMF Spring Meetings in Washington, Selassie highlighted Ghana's prompt action in meeting its obligations, which contrasts with the nine-month delay experienced by Zambia in forming an official creditor committee.

“Whereas it took nine months or more for Zambia to get the official creditor committee to be created, in Ghana’s case it was very rapid and that is what allowed us to go to the board and get the programme approved.

“We are very hopeful that ongoing discussions among official creditors will also expeditiously allow us to conclude the upcoming review. Again, the most recent mission reached an agreement with the government on policies that are needed to tackle the most recent issues and also put in place an important budget for next year,” he was reported by citinewsroom.com to have said.

The optimism extends to the upcoming review, with Selassie noting that the most recent mission has already reached an agreement with the Ghanaian government on necessary policy measures and budget plans for the following year.

“Ghana has done its fair share and it is for creditors to take steps on this, we are not going to ask the government to make more adjustments because creditors haven’t asked either. So we will provide all the information necessary so creditors can move, allowing us to go to the board as soon as possible,” he added.

Despite this progress, Ghana faced a setback earlier in the week when it was unable to secure an agreement with two bondholder groups to restructure $13 billion of international bonds.

The proposed deal did not align with the IMF's debt sustainability parameters, leading to a pause in formal negotiations.

The Finance Ministry said it remains committed to finding a resolution that aligns with the IMF's targets, emphasizing the importance of continued dialogue to reach a sustainable and mutually agreeable solution.

ID/BB

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