The board meeting to discuss Ghana's second review under the Fund program and the payout of $600 million has been rescheduled by the International Monetary Fund (IMF) for January 11, 2024. Joy Business obtained this data from different Official Creditor Committee (OCC) participants engaged in talks over Ghana's debt restructuring with bilateral creditors.
There have been reports of significant progress made by Ghana with its external bilateral creditors, particularly China, in restructuring the bilateral debt terms. This development has led to the rescheduling of the IMF board meeting to January 11, 2024, under the belief that any outstanding issues would have been resolved by then, thereby facilitating the board's review of Ghana’s program.
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While it was expected that a draft Memorandum of Understanding would have been issued by the Official Creditor Committee by now, a concern from one of the members reportedly delayed this action. This delay is partly attributed to the challenge of reaching an agreement with China on debt restructuring, prompting the rescheduling of the IMF board meeting on two separate occasions in November 2023 and December 21, 2023.
The IMF's board was initially set to meet for Ghana’s program's second review in November 2023, but challenges in reaching an agreement with China led to these reschedulings. Despite these adjustments, it’s reported that several hindrances have been resolved, paving the way for potential progress in issuing the necessary MoU for Ghana’s debt restructuring.
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Exchanges with individuals on the Official Creditor Committee have generated optimism regarding significant progress before the January 11, 2024, board meeting, especially with a fresh commitment from China to address outstanding issues.
The IMF is reportedly not seeking a "Full Agreement" between the Official Creditor Committee and Ghana but is rather looking for a "Letter of Comfort" or Memorandum of Understanding from the committee, indicating a willingness to engage in discussions on debt restructuring with Ghana. Additionally, the IMF is said to be seeking assurance of full participation in providing financing for Ghana’s program from these bilateral creditors.
In light of these developments, officials of the Government of Ghana have expressed confidence in securing a deal due to the progress made with bilateral creditors, especially China, in restructuring their debt. The Finance Minister, Ken Ofori-Atta, has also expressed confidence in reaching an agreement with all bilateral creditors to facilitate the IMF Board meeting on Ghana's program.
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He further stated that Ghana will continue to engage with its bilateral creditors to address any concerns before the new board meeting date of January 11, 2024.
According to an official statement from the IMF Ghana, the IMF Executive Board sanctioned a 36-month Extended Credit Facility (ECF) arrangement for Ghana on May 17, 2023, amounting to SDR 2.242 billion (equivalent to about $3 billion). This decision paved the way for an immediate disbursement of $600 million, equivalent to SDR 451.4 million, with the remaining amount expected to be disbursed in installments every six months, subject to approval by the IMF Executive Board following program reviews.
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