COOPER ENGLISH
ACCRA (Reuters) – Ghana’s talks with the International Monetary Fund over a bailout package will be closed to Ghana’s finance minister Ken Ofry-Atta on Wednesday Speed up.
Ghana began negotiations with the International Monetary Fund on Monday over an IMF-backed loan program to reduce the economic hardship that has sparked street protests.
“Negotiations will be quick – tracking to ensure key aspects of the plan are reflected in the 2023 annual budget statement in November 2022 ,” Ofori-Atta told a news conference.
A team of IMF staff is discussing policies and reforms with Ghanaian officials after the West African country applied for a loan from the IMF in July.
The IMF mission is scheduled to run through October 7 and will include a comprehensive assessment of the sustainability of Ghana’s debt burden. If that debt is deemed unsustainable, the fund will not be able to provide support without some sort of restructuring.
Reports last week that the government may be considering restructuring its local currency debt prompted credit rating agency Fitch to downgrade Ghana to ‘CC’ from ‘CCC’.
A senior Fitch executive said a domestic debt restructuring would be “very unusual” and warned it could spell disaster for local financial institutions. A Monday note from Oxford Economics said Ghana was at risk of a recession.
Ofori-Atta said on Wednesday that the government has not yet reached any agreement with Ghana. The fund’s debt operating parameters, but a committee will be formed in the coming days to involve financial sector stakeholders in discussions on how to proceed.
“We welcome all contributions to this great public debate, but we must be careful to build rather than destroy our country,” he said.
