12th November 2023 10:49:05 AM
2 mins readThe Dean of the Business School at the University of Cape Coast, Prof. John Gatsi, Clarifies Delay in Second Tranche of IMF Funds Due to Unresolved Issues with External Creditors"
0
Prof. John Gatsi has provided insights into the delay in disbursing the second tranche of the International Monetary Fund (IMF) funds, attributing it to the protracted discussions with the country's external creditors. He explained that the external creditors are hesitant to agree to the government's proposed 30%-40% haircut.
1
Despite the government's denial of missing a November 1 deadline, the crucial acceptance of the proposed haircut by external creditors is still pending.
2
“The delay is occasioned by the inability of the government of Ghana and the creditors to agree on what is required of them. The Government of Ghana is pleading with the creditors to accept the certain elongation of maturity of the debts and some cuts, about 30 to 40 percent on the interest or the coupons that they expect.
3
“That is where the disagreement is coming from. As things are it seems part of the creditors such as bilateral and multilateral are sort of very soft but it was also indicated that some creditors are excused from the debt exchange programs, they will not be affected,” John Gatsi was quoted by 3news.com.
4
The economist did note that creditors are currently stuck because it is hard to give up their interests.
5
“It is very difficult for commercial creditors to see a chunk of the interest wiped away, I believe that is where the disagreement is and they have not come to terms with it yet. That is why we couldn't meet the target,” he insisted.
6
7
1 min read
2 mins read
1 min read
2 mins read
1 min read
1 min read
2 mins read
2 mins read
1 min read