We have not reached agreement with IMF on parameters of any debt operations – Ofori-Atta

Finance Minister

The Finance Minister Mr Ken Ofori-Atta has said no agreement agreement has been reached yet with the International Monetary Fund (IMF) on the parameters of any debt operations.

He said are in the process of completing the debt sustainability analysis.

Addressing a press conference in Accra on Wednesday September 28, he said “We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis. Government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-tract the IMF negotiation process”

The formal negotiations for a Fund-supported programme began on Monday September 26th, 2022 and discussions are advancing smoothly, according to him.

The IMF Mission, he explained, will cover a period of 10 days; and in line with the President’s dialogue with the IMF Managing Director, Kristalina Georgieva, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022. Government is committed to ensuring that a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth and promoting social
protection.

“As stated in our press release dated 26th September, 2022 on the commencement of the IMF negotiations, having a sustainable debt path is a pre-requisite for the IMF programme. Therefore, the IMF/World Bank and the Ghana Team are currently undertaking a debt sustainability analysis (DSA) to inform the programme negotiations.

“In addition, the IMF and Government Team are working to update the medium-term macro-fiscal framework to inform IMF programme design. Also, the Government Team and the IMF Team are discussing policy measures and structural reforms proposed in our economic programme aimed at addressing the economic challenges facing the country towards restoring and sustaining macroeconomic stability, fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection,” he said.

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Earlier, the Ministry said in a statement that a key prerequisite for a programme is confirmation that Ghana’s debt is on a sustainable path.

This will require a comprehensive Debt Sustainability Analysis (DSA), which is currently ongoing.

A statement issued by the Finance Ministry on Monday September 26 said the Government of Ghana is putting together a comprehensive post Covid-19 economic programme which will form the basis for the IMF negotiations.

“The programme seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability underpinned by key structural reforms and social protection.

“Government negotiations with respect to the IMF-supported programme is commencing this week and we are optimistic about making progress in our discussions.

“Government remains committed, and shall continue to actively engage all stakeholders, both public and private, in a clear and transparent manner as we seek to fast-track this process.”

By Laud Nartey|3news.com|Ghana