The Minister of State at the Finance Ministry, Dr Mohammed Amin Adam, has expressed the government's anticipation of a positive response from Rating Agencies regarding Ghana's approval of the International Monetary Fund (IMF) program.
Dr Adam is optimistic that there will be a favourable outcome during the reassessment, as recent ratings were influenced by concerns about Ghana's fiscal situation, which is now being addressed through the IMF program.
He highlighted that the government has implemented measures over the past 10 months to tackle the economic and fiscal issues raised by the agencies.
Dr Adam made these remarks during an interview on the PM Express Business Edition with host George Wiafe on May 18, 2023.
IMF Program and Ghana's Economy
Dr Adam shared that Ghana expects approximately $1.2 billion to be disbursed by the IMF, subject to meeting certain benchmarks and conditions under the program.
The remaining funds will be disbursed every six months.
He hoped the IMF deal would restore confidence in Ghana's economy.
Dr Adam assured that the government is committed to fulfilling all the necessary conditions to sustain the program.
“There is nothing like difficult conditions that we cannot address, considering the work that the government has done over the past two years,” he stressed.
He also acknowledged the government's proactive implementation of some conditions ahead of schedule, highlighting significant progress compared to other countries that have secured deals with the IMF.
Pension Bond Holders and their Concerns
Regarding the concerns raised by Pension bondholders, who recently protested at the Ministry of Finance due to non-payment of coupons and principals, Dr Adam revealed that progress has been made in reaching a deal with these bondholders.
Restructuring Debts in the Power Sector
Dr Adam discussed the government's proposals for debt restructuring with Independent Power Producers in the power sector.
The Finance Ministry is optimistic that the proposed restructuring plan will be accepted by all stakeholders in the energy sector.
He stated, “The restructuring window covers about $20 billion, and the government is working hard to make progress on it.”
Dr Adam emphasized that the government aims to meet the sustainable debt level of 55 per cent by 2028, and they hope that creditors will cooperate to achieve significant progress in this regard.
