IMF deal: We can manage – Ofori-Atta on external creditors’ cut-off date

Finance Minister Ken Ofori-Atta has stated that Ghana is open to any new cut-off date proposed by external creditors for the restructuring of Ghana’s external debt.

China is suggesting a December 2020 cut-off date instead of the previously agreed-upon date of December 2022.

This delay has affected Ghana’s meeting with the IMF Board for the next tranche of $600 million.

Speaking to journalists in Accra, Ken Ofori-Atta reiterated that Ghana is open to considering any date.

“For us, we can manage, so the issue is for the membership of the OCC [Official Creditor Committee ] to get comfortable, and so we hope that by the end of next week, we will have what we need so that the Fund Board can sit. Everybody is looking at the comparability of treatment in there and China and France certainly are co-chairs, so they have a good impact on what will happen, but we should be okay.”

This comes on the back of claims by the Minority Leader, Dr. Ato Forson, that the negotiation has suffered a setback and the next $600 million package is in limbo.

According to Mr. Forson, there is a disagreement between the government and the Official Creditors Committee regarding the cut-off point for the external debt to be included in the debt restructuring exercise. He insisted that this disagreement has put the release of the next tranche of $600 million in jeopardy.

Minority Leader, Dr. Cassiel Ato Forson who made the allegation during his concluding remarks on the 2024 budget debate in Parliament on Wednesday, November 29, 2023, said Ghana is currently in a tight spot.

“Mr. Speaker, it will interest you to know that there is a deadlock in the negotiation between Ghana and the International Official Creditors Committee (OCC) made up of China and the Paris Club 50. There is a major disagreement on the cut-off point, regarding the external debt that must be excluded from the restructuring. Mr. Speaker, I do not need to sound the alarm that at this point, Ghana is between a rock and a hard place.”