Dr. Mohammed Amin Adam, the Minister of State at the Finance Ministry, expressed his optimism regarding Ghana’s IMF program approval and its potential impact on the country’s ratings. He emphasized recent ratings were influenced by concerns about Ghana’s fiscal situation, which is currently being addressed through the IMF program. Speaking on the PM Express Business Edition on May 18, 2023, with host George Wiafe, Dr. Adam mentioned that the government had implemented measures over the past ten months to tackle the economic and fiscal issues raised by rating agencies.
Regarding the IMF program and Ghana’s economy, Dr. Adam stated Ghana expects to receive approximately $1.2 billion disbursed by the IMF, subject to meeting specific benchmarks and conditions. I will spend the remaining funds every six months. He expressed hope that the IMF program would restore confidence in Ghana’s economy and reassured that the government is committed to fulfilling all the conditions to sustain the program. Dr. Adam emphasized that the government has made significant progress in implementing some conditions early and credited Ghana for surpassing other countries that have secured IMF deals.
Addressing the concerns of pension bondholders who had protested the non-payment of coupons and principals, Dr. Adam disclosed that progress had been made in agreeing with these bondholders.
Regarding the power sector, Dr. Adam mentioned that the government has proposed debt restructuring to Independent Power Producers. The Finance Ministry is optimistic that all stakeholders in the Energy sector will accept the proposal. He added that the restructuring window covers approximately $20 billion, and the government works diligently to make progress. Dr. Adam stressed the importance of meeting the debt sustainability level of 55 percent by 2028, and he expressed hope that creditors would cooperate with the government to achieve significant progress.