After a prolonged duration of seeking financing assurance from some of its external creditors, a prerequisite exercise to secure an International Monetary Fund (IMF), Ghana has finally gained the support of the Paris Club alongside China.
The giant creditors have in effect called on other creditors; private and bilateral, to join the course.
“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, 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,” a statement dated Friday, May 12 by the Paris Club said.
In effect, a creditor committee for Ghana to be chaired by China and France is set to make sure the decision is implemented.
In response to the good news, Finance Minister, Ken Ofori Atta in a Twitter post expressed his appreciation to the supporting parties, adding that Ghana is now ready to stage a Board discussion with the IMF.
“The Paris Club has today established the OCC (co-chaired by China & France). With the granting of Financing Assurances, Ghana is now ready to go to the IMF Board. Thank you to all our bilateral partners for helping us reach this significant milestone! #ResolvingTogether.”
Ghana can now experience some relief after its quest to secure an IMF program had been stagnated by some external creditors’ reluctance to participate in its debt cancellation request.
The country had to provide proof of debt sustainability in order for the IMF to guarantee its bailout request. Experts had earlier speculated that the country’s biggest creditor, China, would only like to engage in a bilateral negotiation with it in order to lay down its own terms on the debt owed it.
The warning was issued by various experts that such an approach could be disastrous for Ghana because some of its state assets might end up being captured by the creditor.
Regardless of the situation, Mr. Ofori Atta expressed confidence that the country would definitely secure the program.
The good news came a day after Information Minister, Kojo Oppong-Nkrumah also indicated that the government was close to securing the bailout request.