The Minority in Parliament has alleged a deadlock in Ghana's negotiations for the second tranche of the $3 billion credit facility from the International Monetary Fund (IMF).

According to the Minority Caucus, there is a disagreement between the government and the International Creditors' Committee concerning the cut-off point for the external debt required in the debt restructuring exercise to secure the next tranche of $600 million from the IMF.

Minority Leader Dr. Cassiel Ato Forson made this allegation in his concluding remarks during the 2024 budget debate in Parliament on Wednesday, November 29, 2023.

“Mr. Speaker, it will interest you to know that there is a deadlock in the negotiation between Ghana and the International Creditors Committee (ICC) made up of China and the Paris Club 50. There is a major disagreement on the cut-off point, regarding the external debt that must be excluded from the restructuring. Mr. Speaker, I do not need to sound the alarm that at this point, Ghana is between a rock and a hard place.”

“Ghana will need to decide either to accept the cut-off date as proposed by the International Creditors Committee and get the IMF Board to approve our USD600 million second tranche or refuse to accept.”

Dr. Forson explained that if Ghana accepts the International Creditors' Committee (ICC) cut-off point, it would result in more debt being excluded from the debt restructuring. This would require the immediate inclusion of that debt in the budget for servicing.

“The moment we begin the servicing of our external debt, everything in this budget will change," he added.

Ghana had previously secured a $3 billion bailout package from the International Monetary Fund (IMF) to address challenges in its ailing economy, including high debt, inflation, and a depreciating cedi. The country had already received the first tranche of $600 million from the Bretton Woods Institutions. In October 2023, the IMF indicated that it was awaiting the outcome of Ghana's engagement with its bilateral creditors before releasing the next tranche of the $3 billion bailout package.