According to Deputy Finance Minister Dr. John Kumah, Ghana’s economy has effectively overcome recent problems, putting it on track for long-term growth that would benefit Ghanaians.
Dr. Kumah emphasized in a Facebook post on January 19 the unanimous approval of Ghana’s request for debt relief under the G-20 Common Framework.
This, he says, is the foundation for his optimistic prognosis on the country’s economic direction.
Dr. Kumah expressed thanks to Ghanaians for their steadfast support of the government’s initiatives and programs.
He notably appreciated their help in minimizing the negative effects of the COVID-19 outbreak and the Russia-Ukraine conflict.
The Ejisu Member of Parliament is optimistic about the country’s future.
He emphasized that the authorized debt treatment lays the groundwork for long-term economic growth, which would eventually benefit Ghanaians.
“An essential prerequisite for the IMF Programme was a confirmation that Ghana’s public debt was on a sustainable trajectory.”
“Subsequently, Ghana embarked on the restructuring of both domestic and external debt. The Domestic Debt Exchange Programme (DDEP) launched on 5th December 2022 has successfully been completed with over 90 percent participation. The OCC’s approval of bilateral debt treatment is expected to provide the impetus for the ongoing commercial debt (Eurobonds) negotiations,” a portion of his Facebook post said.
Dr Kumah added that “the past week was marked by a significant development in the public debt trajectory following the unanimous approval of Ghana’s request for debt treatment under the G-20 Common Framework for Debt Treatment Beyond the Debt Service Suspension Initiative (CF-DSSI).”
“The government has been combining both fiscal prudence and debt restructuring measures to contain growth in public debt with the view of bringing the debt levels to moderate debt level from high risk of debt distress. The Official Creditor Committee (OCC) decision to support the grand efforts of government is commendable, refreshing and worth celebrating. We, however, do so with caution given that more work needs to be done going forward.”
Kristalina Georgieva, the Managing Director of the International Monetary Fund (IMF), has remarked that Ghana’s economic strategies under the project are beginning to produce the intended results.
She argued that the policy and reform obligations specified in Ghana’s agreement with the Bretton Woods Institution are in the best interests of the Ghanaian people.
On Tuesday, January 16, she posted on X (previously Twitter) that the IMF board was pleased with the guarantees received from Ghana’s foreign creditors.
“Wonderful to see President Nana Addo Dankwa Akufo-Addo and Ghana’s Finance Minister, Ken Ofori-Atta at #WEF24. The policy and reform commitments under Ghana’s economic program are starting to bear fruit,” she posted.