Our meeting with China on debt restructuring has been positive and encouraging – Ofori-Atta

Ghana’s Finance Minister, Ken Ofori-Atta, is optimistic that the country will soon secure a deal with the International Monetary Fund (IMF).

He made this statement during a meeting in China where he was discussing the debt restructuring talks with the country, which he deemed positive so far. He also expressed optimism about Ghana’s chances of passing three new tax bills in Parliament.

Ofori-Atta believes that Ghana will soon secure external assurances from China and that the government is making significant progress on securing a deal with the IMF. Ghana, which is going through its worst economic crisis in a generation, and the IMF reached a staff-level agreement in December for a $3 billion loan. However, the IMF’s board must first approve the program before lenders can be asked to provide financing assurances.

With about $1.7 billion in debt, China is Ghana’s largest bilateral creditor. A source familiar with the situation said that the government’s top priority is getting IMF board approval, with the specifics of debt treatment operations coming later.

The talks with China are expected to focus on ways to reduce Ghana’s debt burden and secure additional financing assurances for the country’s economic program.

The finance ministry described the initial debt negotiations between China and Ghana as “cordial and fruitful”. Ghana effectively defaulted on the majority of its external debt last year and is still in need of resolution negotiations with its private international bondholders.

Ofori-Atta’s optimistic outlook is a welcome change for Ghana as the country continues to grapple with a severe economic crisis.

The Finance Minister’s positive statement on Ghana’s debt restructuring talks with China and its potential deal with the IMF shows that the government is making progress toward stabilizing the economy. If Ghana successfully secures financing assurances from China and IMF board approval, it will be a significant step towards restoring confidence in the economy and boosting investor sentiment.

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