IMF bailout: We have crossed the final hurdle – Akufo-Addo on financing assurances

President Nana Addo Dankwa Akufo-Addo has said Ghana has removed the last stumbling block to accessing the US$3 billion extended credit facility from the International Monetary Fund (IMF).

"The Paris Club has on May 12, established the OCC (co-chaired by China & France). With the granting of financing assurances, Ghana is now ready to go to the IMF Board. Thank you to all our bilateral partners for helping us reach this significant milestone!" Ghana’s finance minister Ken Ofori-Atta tweeted.

Speaking at a meeting with the leadership of the Catholic Bishops' Conference at the Jubilee House later in the day, President Akufo-Addo said the progress made paves the way for securing the balance of payments support Ghana needs.

“Today, we were informed that the last hurdle toward our agreement with the IMF has been overcome," Mr Akufo-Addo said.

"The Paris Club met today in Paris in a meeting co-chaired by China and France and have okayed and approved Ghana’s request for an IMF programme," he said.

Meanwhile, the managing director of the International Monetary Fund, Ms Kristalina Georgieva, has said: "I welcome the statement from the Official Creditor Committee for Ghana on the importance of an IMF-supported economic programme, together with its commitment to negotiate debt restructuring terms accordingly".

"This statement provides the necessary financing assurances for the IMF Executive Board to consider the proposed Fund-supported programme and unlock much-needed financing from Ghana’s development partners," she said in a statement.

Ms Georgieva noted: "I also strongly endorse the call by the Official Creditor Committee for private creditors and other official bilateral creditors to commit to comparable debt treatments."

She added: "The Creditor Committee’s action recognises the Ghanaian authorities’ strong reform programme, which aims to restore macroeconomic stability and debt sustainability while laying the foundation for an inclusive recovery."

"It also signals that further progress is being made under the G20 Common Framework, demonstrating that international partners are ready to work together to help countries resolve their debt issues."

"This is vital to enable countries such as Ghana achieve sustainable growth and poverty reduction", she acknowledged.

The IMF reached a staff-level agreement with Ghana in December last year.

Ghana undertook a domestic debt exchange programme followed by a restructuring of its external debts with China and the Paris Club.

The financing assurances from the Asian giant and the Club have been the only stumbling block to Ghana getting a Board approval from the IMF.

Ghana’s economy has been in the doldrums for the past two years.

The IMF's extended credit facility is intended to give Ghana some credit worthiness so the country could return to the international capital market.