IMF Bailout: Parameters for debt operations yet to be determined

The Finance Minister, Ken Ofori-Atta says no agreement has been reached with the International Monetary Fund (IMF) on the parameters of any debt operations.

Former Minister for Finance, Seth Terkper has said the government will have challenges with the calculation of the numerous debts incurred over the period in the debt sustainability analysis with the International Monetary Fund(IMF).

Mr. Terkper further indicated that there are a number of debts the government must table for analysis as part of the negotiation process.

But, during a press conference in Accra on Wednesday September 28, 2022, Mr. Ofori-Atta said IMF will cover a period of 10 days; and in line with the President’s dialogue with the IMF Managing Director, Kristalina Georgieva, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022.

“We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis. Government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-tract the IMF negotiation process.

Government is committed to ensuring that a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth and promoting social protection,” he explained.

Mr. Ofori-Atta stated that in the Ministry’s press release dated 26th September, 2022 on the commencement of the IMF negotiations, having a sustainable debt path is a pre-requisite for the IMF programme.

Therefore, the IMF/World Bank and the Ghana Team are currently undertaking a debt sustainability analysis (DSA) to inform the programme negotiations.

“In addition, the IMF and Government Team are working to update the medium-term macro-fiscal framework to inform IMF programme design.

“Also, the Government Team and the IMF Team are discussing policy measures and structural reforms proposed in our economic programme aimed at addressing the economic challenges facing the country towards restoring and sustaining macroeconomic stability, fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection.”