Ms Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has lauded Ghana on its debt restructuring course of.
Ms Georgieva additionally applauded the nation for reaching a Staff-Level Agreement with the Fund’s Mission group on its third overview of the continuing $3 billion IMF loan-supported programme.
In a put up on X (previously Twitter) on Saturday, October 26, following a gathering with Ghanaian authorities on the 2024 Annual Meetings of the IMF and the World Bank Group (WBG), she mentioned, “our commitment to supporting Ghana’s recovery remains strong.”
Ghana not too long ago accomplished its Eurobond debt restructuring, reaching a 98 per cent change on the nation’s $13 billion debt, surpassing the 65 per cent worldwide benchmark set by bondholders.
This leaves the nation solely with finalising debt reforms with its bilateral business collectors, which the Fund has urged the federal government to make sure that it acquired probably the most beneficial provide.
“The government needs to stay strong and make sure that it gets the best deal it can for the people of Ghana,” the IMF African Director mentioned, whereas acknowledging the progress made on debt restructuring.
Mr Selassie mentioned this throughout a press briefing on Friday, October 25, noting that the current exterior debt settlement aligned with the nation’s objective of reaching debt sustainability by bringing debt-to-Gross Domestic Product (GDP) to 55 per cent by 2028.
Earlier in October, Dr Mohammed Amin Adam, Finance Minister, mentioned the completion of the Eurobond debt restructuring had resolved the nation’s default on worldwide bonds, “marking a significant milestone in its economic recovery.”
He pledged the federal government’s dedication to making sure fiscal consolidation continued, with a concentrate on optimising home income mobilisation whereas implementing stringent expenditure controls to keep away from fiscal slippages.
In a associated improvement, the Minister on the margins of the IMF/WBG conferences, signed a $260 million take care of the World Bank to reform the nation’s vitality sector, resolving inefficiencies, and positioning to draw extra investments.
The deal includes a $250 million credit score metering procurement bundle and a $10 million clear cooking grant element consistent with the Bank’s Programme for Results (PforR) initiative.
It is predicted that the programme result in a drastic discount within the nation’s metering hole, and an integration of the brand new metres into the billing system to enhance upon business loss.
Targets underneath the programme additionally embrace transmission of vitality era in probably the most cost-efficient approach, transparency within the Cash Waterfall Mechanism, and optimum discount in losses in ECG income assortment
The reforms, Dr Amin Adam, mentioned would assist handle quick challenges inside Ghana’s vitality sector but in addition to put a basis for long-term sustainability.
That, he mentioned was aligned with the nation’s nationwide improvement targets and enhancing financial development prospects.
Source: GNA
