The Minority in Parliament believes that Ghana’s negotiations for the second tranche of the $3 billion credit facility from the International Monetary Fund (IMF) have come to a halt.
The Caucus argues that the government and the International Creditors’ Committee disagree on the cut-off point for external debt required in the debt restructuring exercise to receive the next $600 million tranche from the IMF.
On Wednesday, November 29, 2023, Minority Leader Dr. Cassiel Ato Forson made the claim in his concluding remarks on the 2024 budget debate in Parliament.
“Mr. Speaker, you will be interested to know that the negotiations between Ghana and the International Creditors Committee (ICC), which includes China and the Paris Club 50, have reached a stalemate.” There is a significant dispute about the cut-off point for external debt that must be excluded from the restructuring. Mr. Speaker, I don’t think I need to remind you that Ghana is currently stuck between a rock and a hard place.”
“Ghana will need to decide either to accept the cut-off date as proposed by the International Creditors Committee and get the IMF Board to approve our USD600 million second tranche or refuse to accept.”
Dr. Forson noted that if Ghana accepts the ICC cut-off point, more debt will be excluded from the debt restructuring, mandating immediate budget inclusion to service that debt.
“The moment we begin the servicing of our external debt, everything in this budget will change.”
Ghana had already won a $3 billion rescue package from the International Monetary Fund to aid in the recovery of the country’s ailing economy, which was plagued by debt, rising inflation, and a declining cedi.
The Bretton Woods Institutions have already provided the government with the first payment of $600 million.
In October 2023, the International Monetary Fund stated that it would await the outcome of Ghana’s engagement with its bilateral creditors before issuing the next tranche of the $3 billion rescue package.
