Ghana’s economy will recover fully with the coming onboard the $3 billion bailout from the International Monetary Fund (IMF), a Deputy Director of Communications of the New Patriotic Party (NPP) Ernest Owusu Bempah has said.
Mr Owusu Bempah said the bailout would cushion the economy and help the government to honour its obligation such as payment to contractors.
“The Ghanaian economy will bounce back and NPP will win the hearts of Ghanaians with the coming of the IMF loan facility. This will cushion the economy, it has already restored investor confidence in our economy,” he said in a short statement.
He added that the deal will also “bring down inflation and help the government to finance most development projects, contractors will be paid. Ghanaian people must have confidence in the NPP to deliver a better economy.”
Congratulations to President @NAkufoAddo & his team on the $3 billion IMF-supported program approved by our Executive Board.
We stand with Ghana as it implements reforms to address the current economic and financial crisis and help build a better future for all Ghanaians.
— Kristalina Georgieva (@KGeorgieva) May 17, 2023
The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May 12.
A press statement issued by the Paris Club on Friday, May 12 said “The creditor committee stresses that the Ghanaian authorities are expected to seek from all private creditors and other official bilateral creditors debt treatments on terms at least as favorable as those being considered by the creditor committee, in line with the comparability of treatment principle.
Consequently, it added “the creditor committee urges private creditors and other official bilateral creditors to commit without delay to negotiate with Ghana such debt treatments that are crucial to ensure the full effectiveness of the debt treatment for Ghana under the Common Framework.”
Also, a creditor committee for Ghana has been formed by countries with eligible claims to see to the quick implementation of the resolution. The creditor committee is expected to be co-chaired by China and France.
“The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the “Common Framework for Debt Treatments beyond the DSSI” endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club.”
The IMF Board has today approved Ghana’s request for a $3 billion ECF, backed by our Post Covid-19 Programme for Economic Growth (PC-PEG). Our strong growth & reform programme, coupled with this #IMFDeal, firmly positions Ghana towards a #ResilientRecovery #GHANARISING 🙏🏽 pic.twitter.com/502Hnml0lq
— Office of the Finance Minister-Ghana (@oofmghana) May 17, 2023
“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs.
“The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs,” the statement added.