The Chairman of Parliament’s Finance Committee, Kweku Kwarteng, says while he is confident Ghana will get an IMF deal in the shortest possible time, the real challenge is to get the country’s external creditors to stick to their commitment once the programme has been rolled out.
One of the requirements for Ghana’s external debt restructuring was for the country to get the commitments of its external debtors to support it as it completed the three-year programme.
However, despite some strong public assurance that the country will be supported throughout the IMF process, the fear of possible derailment by some bilateral donors is very palpable as these commitments are not binding.
“What is really important is that we get a programme and the programme does not derail. By derail, what I mean is, all these commitments that are coming, your bilateral partners are saying that we commit to helping you along this path, and they’re making those commitments to you because you yourself have committed in your budget to do some things.
“So they give a commitment, your creditors also give commitment. These are not direct reliefs, they’re indications that we’re willing to move this journey with you. Now on the back of that, the IMF is willing to give you a programme. You’ll get the first tranche, and then you must now proceed and get the commitment, actualise the commitment that you got.
“So if you had China that said ‘I would help you’, after the first payment comes, the IMF is expecting to see what exactly China would have done for you by the time the second review happens. For me, that is where the challenge really is,” he said on JoyNews’ PM Express Business Edition.
He added that, while he is confident the country will get all the needed commitments to proceed with the IMF deal, he is hoping that all of the country’s bilateral donors stick to their commitment when the deal is finalised and underway.
“These are commitments and it’s very easy to get. And in fact, it’s one of the boxes you must tick that you must even have a good faith engagement with your private creditors. I mean, these are very technical things so we’ve had that yesterday and that box has been ticked. I am sure that the boxes will be ticked,” he assured.
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