Ghana less likely to receive $3bn from IMF by end of March
21st March 2023 3:30:56 PM
3 mins read
Ghana’s objective to receive a credit facility worth $3 billion from the International Monetary Fund (IMF) by the end of March seems to be on tenterhooks.This is because, on the IMF Executive Board Calendar, the Fund has not made room for a discussion on Ghana’s request for economic support.From March 22 to 29, 2023, the IMF will be in Papua New Guinea, Peru and Colombia.
0
In Papua New Guinea, the IMF Board will be looking at the Request for the Extended Credit Facility/Extended Fund Facility. The IMF Board will have a 2023 Article IV Consultation Meeting and 2023 Article IV Consultation with Peru and Colombia respectively.
1
<img alt="" class="wp-image-465367"/>The IMF Board per the calendar has no official business up until March 27, 2023, when it engages Burkina Faso over its Request for Disbursement Under the Rapid Credit Facility.The Board’s final engagement in March happens on March 29, 2023. It will be providing a World Economic Outlook; Global Financial Stability Report; Fiscal Monitor.
2
<img alt="" class="wp-image-465368"/>According to the IMF on its website, its calendar is subject to change, however the agenda for each meeting is typically finalized the day before the meeting.President Akufo-Addo has assured that Ghana would receive support from the IMF by the end of this month.
3
While presenting the State of the Nation’s Address on March 8, he said “we are on course for the IMF Staff to present to the IMF Executive Board Ghana’s programme request for a $3 billion extended credit facility by the end of the month.”The Minority Leader, Dr Cassiel Ato Baah Forson, is however, pessimistic about Ghana making headway in its engagement with the Fund.
4
He argued that Ghana is yet to receive financing assurances from its creditors, hence his posture on the subject."We need to get China to give Ghana financing assurance that they are ready to accept a haircut.
5
Aside that, we are also expected as a country to get financing assurance from the Paris club, including Germany, who are telling us to go and cut down the size of our government and reduce government expenditure yet we don’t seem to care," he said.
has been eight months since the Akufo-Addo-led government reached out to the IMF - believed to be the seventeenth time Ghana has gone to the
6
Fund.Meanwhile, Finance minister Ken Ofori-Atta will travel to Beijing on Wednesday to meet Chinese officials to discuss a proposed restructuring of Ghana's debt.On February 6, 2023, President Akufo-Addo announced China’s relevance in steps towards the recovery of the Ghanaian economy.
7
Engaging the Finance Minister of Germany, Christian Lindner, the President asked that he put in a word for Ghana to convince President Xi Xinping to assist the West African country.“We have good relations with China. We would like you to encourage China to participate in these programmes as quickly as possible,” President Akufo-Addo said.
days later, reports emerged that Ghana had personally
8
initiated talks with China.Finance Minister Ken Ofori-Atta planned to visit China, which it owes about $1.7 billion according to Reuters, and holds $5.7 billion of its external bonds by the end of the week (February 26). Due to the National People’s Congress of China meeting scheduled for March 5, 2023, the meeting was postponed.
9
On Monday, March 20, 2023, Mr Ofori-Atta left Ghana for China to resume discussions on a debt cancellation.Source: The Independent Ghana
10
