IMF, World Bank, and US Treasury Department Back Ghana’s Bid for Quicker IMF Bailout Deal

The International Monetary Fund (IMF), the World Bank Group, and the US Treasury Department are backing Ghana’s request for an IMF bailout deal to ease the economic pains faced by the country and its citizens. At the just-ended IMF/World Bank Spring Meetings in Washington, DC, Ghana secured the support of private sector investors and key development partners for a quicker deal for an economic turnaround.

Ghana turned to the IMF for support to stabilize its economy in July last year and has since met all prior actions necessary for a final approval. The IMF Executive Board now awaits financial assurance from the country’s creditors to sign off the deal.

The momentum from the leaders has boosted the government’s optimism that the country could soon secure the much-needed financial assurances, a mix of debt cancellation, restructuring and commitment of further strategic lending, soon to pave the way for a deal, latest by the second quarter of the year.

IMF Managing Director, Kristalina Georgieva, and the IMF African Department Director, Abebe Aemro Selassie, assured Ghanaians at the Spring Meetings that efforts to fast-track the process were underway but must be quickened.

Ms Georgieva said she would use every opportunity to urge the creditors “to act swiftly.” Earlier, the Finance Minister, Ken Ofori-Atta, described Ghana’s participation at the meetings as highly successful.

China, the country’s biggest bilateral lender, had been seen as a potential source of delay to the granting of financial assurances to Ghana. But Mr Ofori-Atta said China had been cooperative.

Ghana’s quest for a quicker deal from the IMF has gained the support of key decision-makers in the global economy. The government is optimistic that the country could soon secure the much-needed financial assurances to pave the way for a deal, latest by the second quarter of the year.