Ghana eager to conclude debt negotiations with private creditors – IMF African Director

Director of the African Department of the IMF, Abebe Selassie, has averred Ghana is very much interested in concluding debt negotiations with international bondholders.

According to him, the country is also eager to secure an MoU on debt treatment with its bilateral creditors.
“I think Ghana’s authorities are very much interested in, of course, bringing to a conclusion the debt negotiations and I am hopeful also that the country’s private creditors are interested in same,” he quipped making the assertion during a press briefing on the sidelines of the ongoing IMF/World Bank April Spring Meetings.

On a timeline for the possible conclusion of debt negotiations between Ghana and international bondholders, Mr Selassie noted negotiations take time and as such won’t be able to give timelines.

“You know, negotiations take time and I’m not sure I can give a timeline. This is something that is between Ghana and its creditors,” he remarked.

The IMF says it is very hopeful that Ghana will reach an agreement with international bondholders that is consistent with the debt sustainability parameters of the country’s Fund programme and help lower the debt burden to the right level.

“With respect to commercial creditors, you know, I think we are grateful that the government shared with us some of the terms that are under consideration and IMF staff have provided input on you know, whether these terms are consistent with programme parameters, and the government has decided that they would not pursue the terms just yet. Again, you know, I think we’re very hopeful that there will be movements and that they can reach agreements consistent with the programme parameters, helping lower the debt burden to the right level and avoiding of course, the people of Ghana having to make too much sacrifice,” the IMF stated.

Meanwhile, the IMF has also stated that not attaining an MoU with official creditors will not prevent Ghana from receiving the third $360m tranche from the IMF.

“As of now, there is no MOU with bilateral creditors. But we know that there have been intensive discussions in recent weeks. And those are continuing and we’re very hopeful that they will be able to reach a deal with bilateral official creditors. To be clear, they have provided financing assurances though, and so we do not envisage that this will be an issue for our ability to conclude the next review and provide the disbursement that’s pending. As we noted, we’ve reached that staff-level agreement and that’s by far the most important component for the review,” the IMF quipped.

Source: Norvanreports