Ghana is on the verge of clinching the $3billion bailout deal from the International Monetary Fund (IMF) following the necessary debts assurances given by the Paris Club and China.
The newly-formed creditor committee for Ghana, co-chaired by France and China, has asked private and official bilateral creditors to commit without delay to debt treatments that are crucial to ensure the full effectiveness of the debt treatment under the Common Framework for Debt Treatments beyond the DSSI.
Paris Club issued a statement noting that the Ghanaian authorities are expected to seek debt treatments on terms at least as favorable as those being considered by the creditor committee.
The committee examined Ghana’s macroeconomic and financial situation, including its long-term debt sustainability, and supported its IMF upper credit tranche program and its swift adoption by the IMF.
China and the Paris Club have asked private creditors and other official bilateral creditors to commit to Ghana’s deal without any further delay after they agreed to provide the debt assurances needed for Ghana to secure the $3bn bailout from the International Monetary Fund (IMF)
A press statement issued by the Paris Club on Friday, May 12, 2023 said “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 favorable as those being considered by the creditor committee, in line with the comparability of treatment principle.
Consequently, it added “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.”
Also, a creditor committee for Ghana has been formed by countries with eligible claims to see to the quick implementation of the resolution. The creditor committee is expected to be co-chaired by China and France.
“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 statement added.
By Vincent Kubi
