IMF fingerprints all over 2023 budget, debt exchange programme – John Kwakye

JOHN Kwakye IEA Director of Research, Dr John Kwakye

Mon, 5 Dec 2022 Source: www.ghanaweb.com

Director of Research at the Institute of Economic Affairs (IEA), Dr John Kwakye, has averred that government's announcement of a debt exchange programme was influenced by the International Monetary Fund (IMF).

He further asserted that the 2023 budget statement presented by the Finance Minister, Ken Ofori-Atta was also geared towards securing a financial bailout from the IMF.

Dr Kwakye in a tweet said, “IMF’s fingerprints are all over the 2023 Budget and the debt exchange presented by the Minister.”

The finance minister, at a press conference in Accra on Monday, December 5, 2022, said under the debt exchange programme all domestic bondholders will exchange their instruments for new ones.

Existing domestic bonds as of December 1, 2022, will be exchanged for a set of four new bonds maturing in 2027, 2029, and 2037.

The annual coupons on all of these bonds will be set at 0% in 2023, 5% in 2024 and 10% from 2025 until maturity.

Meanwhile, Ghana is targeting an amount of $3 billion over a three-year period from the IMF once an agreement on a programme is reached.

The new amount requested as a loan is double the government’s initial target of $1.5 billion.

The IMF programme is aimed at restoring macroeconomic stability and safeguarding debt sustainability among many others.

Source: www.ghanaweb.com
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