The government of Ghana is being urged by the United States of America (USA) to advance negotiations with the International Monetary Fund (IMF).

“We are in favor of Ghana’s request for an IMF economic bailout,” they stated their support.

The US government is in favor of Ghana’s decision to request a bailout from the IMF, according to Madam Virginia Palmer, the US ambassador to Ghana.

On Saturday, December 10, 2022, the US ambassador praised the nation’s choice to apply for an IMF economic bailout in an interview with Accra-based Joy FM.

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She claims that in her capacity as an IMF board member, she will help the government’s efforts to reach an agreement with the IMF.

Meanwhile, she pleaded with the government to speed up talks with the IMF.

By Tuesday at the latest, the International Monetary Fund (IMF) and Ghana are anticipated to reach a staff-level agreement on a loan package, according to three sources familiar with the negotiations.

A request for comment from the IMF did not receive a prompt response. The Ghanaian finance ministry’s representative stated they were unable to comment further than to say that things were still in progress.

According to two sources, the IMF program is anticipated to be an extended credit line that offers countries financial support.

One of them and a third source claimed that significant obstacles in the negotiations were removed this week, hastening the process.

Background

In light of the greatest economic crisis the West African nation has had in a generation, Finance Minister Kenneth Ofori-Atta has stated that he is seeking a relief package of up to $3 billion, maybe spread over a three-year period.

Meanwhile, Ghana, which produces oil, gold, and cocoa, has stated that it needs the agreement before the end of the year.

This week, the government unveiled a proposal to replace $10.5 billion in local bonds with new ones as the first step in its debt restructuring process. However, the government has not yet revealed its plans for reorganizing its foreign debt.

A person with knowledge of the situation claimed that the requirements for a restructuring of the foreign debt were the remaining obstacle and that an agreement was anticipated to be reached on Friday.

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Conclusion

Stay tuned for more interesting news updates.

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