Securing IMF bailout by May ending feasible – Joe Jackson

Director of Business Operations at Dalex Finance, Joe Jackson has expressed optimism about the government’s indication to secure an IMF bailout by May 2023.

Mr. Jackson said the May ending disclosure by the Minister of Finance, Ken Ofori-Atta is a more feasible date than the initial March ending deadline.

“The May deadline is a lot more realistic than the March deadline was, and in that sense, the May deadline seems to be a lot easier to attain than the March deadline. As the Finance Minister indicated there are still issues such as cocoa bills, dollar bonds, and independent power producers to deal with, this window will provide time for them to be resolved.”

While addressing Eurobond holders at an Investors Presentation in Washington DC on Friday, April 14, Mr Ofori-Atta disclosed that the government is expected to receive IMF Board approval for a $3 billion bailout by the close of May 2023.

“We do at this time expect an IMF board approval in May [2023] and contemplate a rapid negotiation of a Memorandum of Understanding (MoU) with our creditors. We have made significant efforts on all fronts. We hope we could reach an agreement in principle with you our Eurobond holders quickly.”

The financial analyst lauded the government’s domestic debt exchange programme which he said will help the government get enough substance to back its demand for a bailout but however, cautioned there is no way both the IMF and investors will sacrifice to come to Ghana’s rescue.

“The good thing is that I believe the government has learnt from the domestic debt exchange programme and in a few weeks there may be enough substance to take to the IMF Board.

“They are willing to help us, but they will not cut their noses to help us. It is not going to be as easy as walking into a negotiation and asking them to cut their noses to help us, it is not going to happen.”