Finance Minister Ken Ofori-Atta has expressed confidence that the Ghanaian government will secure a Memorandum of Understanding (MoU) with its external creditors by November.
This development is expected to enhance stakeholder and investor confidence in the Ghanaian economy and further support efforts to achieve macroeconomic stability, debt sustainability, and inclusive growth.
The MoU will outline specific debt treatment terms that external creditors will agree upon with Ghana as part of the government's 17th International Monetary Fund (IMF) loan-support program.
Ghana recently reached a Staff-Level Agreement with the IMF for the first review of its US$3 billion Extended Credit Facility (ECF), paving the way for the disbursement of a second tranche of US$600 million upon Executive Board approval.
The IMF loan-support program aims to ensure macroeconomic stability, debt sustainability, and inclusive growth in Ghana while safeguarding the interests of vulnerable populations.
Speaking at a press conference following the conclusion of the IMF Staff Mission in Accra, Finance Minister Ofori-Atta revealed that the government intends to use the IMF/World Bank Group (WBG) Annual Meetings in Marrakech to finalize these agreements.
He expressed optimism that bilateral creditors will provide the MoU by November for board approval.
Ofori-Atta also highlighted the progress made in engaging with Eurobond holders and official lenders and expressed hopes of further advancements during the IMF/WBG annual meetings in Marrakech.
The Finance Minister noted that the implementation of the IMF-supported Post-COVID-19 Programme of Economic Growth (PC-PEG) has led to signs of macroeconomic recovery and stability in Ghana.
Key indicators include GDP growth averaging 3.2 percent in the first two quarters of 2023, a decline in headline inflation to 40.1 percent in August 2023, and relative stability in the Cedi, which has depreciated by 23.5 percent cumulatively in the first half of 2023.
Additionally, the primary balance on a commitment basis achieved a surplus of $2.2 billion.
Mr. Stephane Roudet, IMF Mission Chief for Ghana, commended the Ghanaian authorities for their strong policy and reform commitment under the program, which is now showing positive results, including economic stabilization and resilient growth in 2023.
He emphasized the importance of securing an agreement with official creditors on debt treatment terms consistent with IMF Executive Board approval program parameters and debt targets.
