An IMF official stated that Ghana reaching a restructuring agreement with holders of its international bonds is more a matter of time than facing insurmountable obstacles. Abebe Selassie, African Department director at the IMF, emphasized that the government’s dedication to negotiations in the coming weeks will determine the outcome.
Despite Ghana’s recent announcement of not reaching a feasible restructuring agreement with bondholders, talks will persist until a deal aligns with the IMF’s debt sustainability targets. Selassie reiterated the IMF’s stance that while a bondholder deal is not required for the approval of the second review of Ghana’s $3 billion loan program, progress in negotiations is essential.
The IMF’s approval of the second review and unlocking a $360 million tranche is contingent upon Ghana and its official bilateral creditors reaching a Memorandum of Understanding consistent with the program’s objectives. Selassie highlighted the complexity of debt restructurings but acknowledged Ghana’s relatively swift progress, underscoring the need for expedited deals.
Source: Reuters