IMF demands ‘sufficient’ assurances on debt restructuring before Board approves $3bn deal

The International Monetary Fund (IMF) says despite reaching a staff-level agreement with the government for a $3-billion extended credit facility, approval will be done by its Management and Executive Board.

The Mission Chief for Ghana, Stéphane Roudet, says the agreement, to span three years, is also subject to the receipt of the necessary financing assurances by Ghana’s partners and creditors.

Announcing the details of the agreement in Accra on Tuesday, December 13, Mr Roudet said Ghanaian authorities have committed to a wide-ranging economic reform programme post-Covid and assured of tackling deep challenges facing the economy.

One of the key areas to tackle is restoring public debt sustainability, for which the government, according to the IMF, has announced a debt restructuring programme.

Mr Roudet said: “To support the objective of restoring public debt sustainability, the authorities have announced a comprehensive debt restructuring.

“Sufficient assurances and progress on this front will be needed before the proposed Fund-supported program can be presented to the IMF Executive Board for approval.”