Ghana Secures Paris Club Financial Assurance Ahead Of IMF Bailout
Ghana’s IMF bailout seeing a positive face as China and Paris Club gives assurance of providing debt support in order for Ghana to seek support from the International Monetary Fund.
This was contained in a timely press release from the Paris Club on Friday, May 12. The press statement thus recommends Ghana to private creditors as well as official bilateral creditors.
“The creditor committee stresses that the Ghanaian authorities are expected to seek from all private creditors and other official bilateral creditors debt treatments on terms at least as favourable as those being considered by the creditor committee, in line with the comparability of treatment principle.
“Consequently, the creditor committee urges private creditors and other official bilateral creditors to commit without delay to negotiate with Ghana such debt treatments that are crucial to ensure the full effectiveness of the debt treatment for Ghana under the Common Framework,” the statement revealed.
The report also hinted on the formation of a creditor committee for Ghana. The Committee as described by the report shall be co-chaired by China and France and shall see to the implementation of resolutions in the financial sector.
“The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the “Common Framework for Debt Treatments beyond the DSSI” endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club.”
“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs,” the report added.
Ghana’s Finance Ministry also took to their official Twitter space to share to piece of good news with Ghanaians.
“The Paris Club has today established the OCC (co-chaired by China & France). With the granting of Financing Assurances, Ghana is now ready to go to the IMF Board. Thank you to all our bilateral partners for helping us reach this significant milestone! #ResolvingTogether,”the tweet revealed.