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Ghana hopes to take a big step towards restructuring its $58bn-worth of debt this week, with its bilateral creditors meeting today to discuss whether to provide enough relief to unlock a $3bn IMF bailout.
Ghana owes $5.5bn to foreign governments and their state banks.
Ken Ofori-Atta, finance minister, said he had “hope” those bilateral creditors would consent to enough debt relief to enable the country to tap an IMF loan package agreed upon last year.
Commitments from bilateral creditors to provide debt relief are often the first step to unlocking an IMF-backed restructuring programme.
The French Treasury, which hosts the Paris Club of bilateral creditors, said the group was “doing everything” to reach an agreement on the commitments required.
China, which is owed $1.9 billion, was expected by Ofori-Atta to agree to a deal, despite not being a member of the Paris Club.
Ghana stopped repaying most of its debts in December and reached a preliminary deal with the IMF on a rescue package in the same month.
But the IMF’s support is dependent on Ghana meeting a string of conditions, including measures to raise revenues through a rise in the rate of value-added tax, tariff increases on public utilities and an end to central bank finance for the government.
By uniquenewsgh.com
