Finance Ministry provides update on possible debt operations

The Ministry of Finance has provided updates on the progress of technical work on possible debt operations, as part of ongoing negotiations with the International Monetary Fund (IMF).

This update follows statements made on the sides of the presentation of the 2023 budget in Parliament on Thursday 24th November, 2022.

Regarding possible Debt Operations, the Ministry said as stated in the Budget Speech by the Minister for Finance, Ken Ofori-Atta, the Government of Ghana is contemplating a debt operation aimed at alleviating the pressures on the national budget and restoring debt sustainability.

“This would also open up financing streams and provide needed balance of payment support from the Fund,” a statement by the Ministry said.

It added “Details of the different layers of a debt operation, including the terms of principal payments and interest on the public debt, are still being discussed, taking into account principles of debt sustainability and international best practices. All measures will be communicated by the Ministry of Finance in due course.

“The Government of Ghana reiterates its commitment to rolling out a lasting solution to the current economic challenges, with the ultimate goal of restoring macroeconomic stability and anchoring debt sustainability.”

In the budget statement, the  Ofori-Atta said that “despite the heightened debt levels, Government remains committed to ensuring that debt is brought to sustainable levels over the medium to long-term.

“To this end, we will implement a debt exchange programme to address the challenges identified in the portfolio in collaboration with all relevant stakeholders including the Ghanaian public, investor community and development partners.”

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By Laud Nartey||Ghana