The International Monetary Fund (IMF) is set to announce its position on the Ghana government’s intention to return to the capital market for borrowing. This statement is anticipated during a media briefing on Thursday at the ongoing World Bank and IMF Meetings.
Ghana recently completed a debt restructuring programme that successfully saved the country approximately $5 billion. The need for this restructuring arose when Ghana’s debt surged to unsustainable levels exceeding 100% of its Gross Domestic Product (GDP), resulting in a shutdown of the capital market and downgrades from all three major international rating agencies.
The debt restructuring, which initially focused on the domestic market, caused significant losses for investors who had previously viewed government investment instruments as risk-free. As Ghana considers re-entering the capital market, concerns are mounting about the potential for reverting to unsustainable debt levels, especially given the painful experiences of the recent past.
At a media briefing held during the ongoing World Bank and IMF meetings in Washington, D.C., a journalist inquired about the IMF’s perspective on the Ghanaian government’s plans. Tobias Adrian, Financial Counselor and Director of the Monetary and Capital Markets Department at the IMF, responded by highlighting the importance of this issue, stating that “the regional economic press briefing on Africa will go further into detail on those issues.” He emphasized the Fund’s close engagement with Ghana, expressing confidence that the country’s economic outlook will improve moving forward.
The annual meetings of the World Bank and IMF convene Finance Ministers and Central Bank Governors from member countries to discuss pressing global economic issues, as well as to facilitate various financial transactions and agreements.
Ghana’s Finance Minister, Dr. Mohammed Amin Adams, is expected to address the complexities of managing debt in low-income countries during his scheduled appearance on IMF Today, a live broadcast program designed to delve deeper into significant topics relevant to stakeholders at the IMF-World Bank Group 2024 Annual Meetings.
Source:thehighstreetjournal.com