Ghana's aim should be $5.4 billion in external debt restructuring talks - Analyst

A Finance Professor at Andrews University in Michigan, USA, Williams Peprah, has asked the government to fix its aim for external debt restructuring at $5.4 billion.

As Ghana met its external creditors, yesterday, January 8, the finance lecturer advised the government to negotiate based on a fixed amount.

He said the government must insist on the fast-tracking of negotiations to avoid further damage to the economy.

“If you ask me, we may have to go in with a figure to negotiate. The $5.4 billion that we want, whatever cut-off point that is being approved, we should be able to convince these external creditors that the $5.4 billion is what will help our economy and help us to complete our restructuring programme,” he explained.

“Whatever cutoff date may be agreed by each party, whether the Paris club or China, the aim should be on the $5.4 billion. That should be the cut-off date,” he insisted.

Already, the second tranche of the loan from the International Monetary Fund has been delayed due to talks with external creditors.

Also, Ghana is expected to receive some $1.15 billion in funding from the International Monetary Fund and the World Bank by the end of February.

This comes as bilateral creditors are currently nearing an agreement on the terms for the country’s debt restructuring.

According to the Minister of Finance, Ken Ofori-Atta, he is confident that official creditors will agree on a memorandum of understanding in a meeting scheduled for Jan. 8, Bloomberg said.

SSD/NOQ

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