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China and the Paris Club have agreed to provide debt assurances to support Ghana’s request for the balance of payment help from the International Monetary Fund (IMF). The announcement was made through a press statement issued by the Paris Club on May 12.
The press statement emphasized that Ghanaian authorities are expected to seek similar favorable debt treatments from all private creditors and other official bilateral creditors per the principle of comparability of treatment. The creditor committee urged private creditors and other official bilateral creditors to promptly negotiate with Ghana to ensure the effectiveness of the debt treatment under the Common Framework.
In addition, a creditor committee of countries with eligible claims in Ghana has facilitated the swift implementation of the resolution. China and France will co-chair the committee.
The creditor committee thoroughly assessed Ghana’s macroeconomic and financial situation, including its long-term debt sustainability and its formal request for debt treatment under the Common Framework endorsed by the Paris Club. The committee supported Ghana’s proposed IMF Upper Credit Tranche (UCT) program. It urged the adoption of the program by the IMF Executive Board to address Ghana’s urgent financing needs. The committee encouraged Multilateral Development Banks (MDBs) to support Ghana in meeting its long-term financial requirements.
In related news, Kojo Oppong Nkrumah, the Information Minister, stated Ghana would soon secure a bailout from the International Monetary Fund (IMF). He mentioned that Ghana’s bailout package was nearly ready for presentation and approval following successful engagements between the government and Ghana’s creditors. Mr. Oppong Nkrumah shared this information based on government sources within the Bretton Woods institution.
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Source: Omanghana.com
