President Nana Addo Dankwa Akufo-Addo is courting the support of Japan to help Ghana reach an agreement with the International Monetary Fund (IMF) Board for the 3 billion dollar balance of payment support.
According to Akufo-Addo, Japan which is a member of the Paris Club has a major role to play in Ghana securing the IMF deal.
Speaking at a meeting with the Japanese Prime Minister, Fumio Kishida who made a stopover at the Jubilee House Tuesday evening, Mr Akufo-Addo said Ghana will repay Japan’s support.
“Ghana is also counting on the support of Japan in reaching a favourable agreement with the International Monetary Fund which will pave the way for the robust recovery of Ghana’s economy,” President Akufo-Addo said.
In July 2022, Ghana requested for a three-year, US3bn extended credit facility (ECF) from the IMF. An arrangement was agreed with the IMF in December 2022, with the aim of restoring credibility among investors, building reserve buffers and improving fiscal and debt sustainability.
Howver, debt restructuring needs to be agreed upon with Ghana’s external creditors before the IMF’s Executive Board can sign off on the ECF.
Meanwhile, Ghana’s hope of securing an IMF board approval is expected to delay owning to prolonged externals debt-restructuring negotiations, and the involvement of numerous stakeholders in the process, according to the Economic Intelligence Unit (EIU).
The EIU in its 2023 Country Report on Ghana, stated that it anticipates Ghana to secure restructuring agreements on its public external debt during 2023-24, involving official and private creditors alike.