Ghana is hopeful that the continuing discussions with the International Monetary Fund (IMF) would be concluded by March, 2023.
This is because one of the prerequisites, the domestic debt exchange program, has been “virtually concluded,” allowing the government to go the full hog.
President Nana Addo Dankwa Akufo-Addo offered this assurance last Friday at the Jubilee House in Accra during talks with visiting German Federal Minister of Finance Christian Lindner.
He stated that the government’s key concerns include the process of ending negotiations with the IMF, as well as the particular support that would help Ghana accelerate its economic recovery.
“We have already taken one important step forward in concluding a staff level agreement with the IMF. One of the steps was the domestic debt exchange programme which encountered a lot of difficulty; but it has now been virtually concluded.
“We are now looking towards going the full hog and concluding the IMF agreement. We’re hoping that will be done by the middle of March,” President Akufo-Addo said.
Visit
Germany’s Finance Minister visited Ghana for bilateral consultations with the government and business groups, as well as to reassure Ghana of Germany’s commitment to assisting Ghana in overcoming its present economic issues.
He was joined by a delegation of technocrats and Bundestag members from Germany’s federal parliament.
Mr Lindner stated that the delegation was in Ghana because, despite economic issues, they felt they could be transformed into opportunities for bilateral trade.
He stated that he had already had good and constructive discussions with his Ghanaian counterpart, Ken Ofori-Atta, about the present crisis and how Germany might assist in overcoming it.
After months of speculation, Ghana declared on July 1, 2022, that it will approach the IMF for assistance.
Following that, in December 2022, the government signed a staff-level agreement with the fund as part of the proceedings leading to a bailout.
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President Akufo-Addo hailed Germany’s willingness to assist the country in overcoming its present economic issues and urged the German government to provide its support in this regard.
He stated that one critical aspect was the financial stability fund provided to Ghana, which was one of the primary objectives of the discussions, and that the German government’s voice was needed to help bring it about.
He was relieved that Germany was prepared to assist in this direction.
“We count on Germany, as one of our privileged partners, not just in Europe but in the world. I am pleased to hear the statement of willingness to do what you can to assist us in the difficult economic situation in which we are,” the President emphasised.
Security
President Akufo-Addo also complimented Germany for giving military aid to West Africa to cope with the Jihadist insurgencies, a move he termed as “very concrete and highly acceptable”.
“We have to find a way of bringing the insurgency in West Africa to a close. If we don’t, all these other things that we want to do to develop our society and economy will be very difficult. It is eliciting a great deal of resources that we can hardly afford and are now being diverted for security, support and initiatives,” he added.
He said the increasing activities of the insurgents were disturbing the entire region, with Ghana directly in the line of fire because Burkina Faso was its northern neighbour.
The President stated that around 4,000 persons from Burkina Faso had taken sanctuary in Ghana in the previous six weeks, and that they were the only ones the refugee board could officially count, with many more unaccounted for.
Ghana needs help
Mr Lindner reaffirmed his prior appeal for an international credit committee to assist Ghana.
Earlier, at a joint press conference with Mr Ofori-Atta, Mr Lindner had, said he had also addressed Ghanaian business leaders and managers of financial institutions on how “Germany can be of help to Ghana to overcome the current situation”.
He urged for the rapid establishment of an international credit committee within the common framework to assist Ghana in debt restructuring.
“For Germany, it is essential to see a fair burden sharing among all creditors. We need a creditor committee as soon as possible. I would like to call on all creditors to join the efforts as swiftly as possible,” he said, and reminded China, Ghana’s largest bilateral trading partner, of its responsibilities as an important bilateral creditor to participate in the programme.
“We have to find new approaches to the over indebtedness of low-income countries and the common framework is part of this solution and Germany is willing to play its role,” he said.
Despite Ghana’s economic issues, the German Finance Minister expressed optimism that these could be transformed into opportunities for bilateral trade and growth, emphasizing the importance of Ghana’s cooperation.
“We now have the relations with the Paris Club, the common framework. We are looking for, as quickly as possible, a committee to be established, so we will have a body with whom we can engage to bring about those discussions as quickly as possible,” he added.
Mr Lindner also stated that the stability and security of the West African area was critical for European security, and that Germany will offer assistance to maintain the sub-region stable and safe.
SOURCE: GRAPHICONLINE
