Renegotiating IMF deal nearly impossible – Asuming

The
debate
over
economic
strategy
continues
to
heat
up,
leading
up
to
the
2024
general
elections,
with
economic
analysts
suggesting
that
renegotiating
Ghana’s
$3
billion
bailout
programme
with
the
International
Monetary
Fund
(IMF)
may
be
nearly
impossible.

Ghana
is
currently
navigating
a
three-year
Extended
Credit
Facility
(ECF)
programme,
with
$1.6
billion
already
disbursed.
The
country’s
economic
health
hinges
on
the
stringent
conditions
set
by
the
IMF.

In
a
bold
move,
the
National
Democratic
Congress
(NDC)
flagbearer,
John
Dramani
Mahama,
has
hinted
at
the
possibility
of
renegotiating
the
deal
if
he
is
elected
president
in
the
upcoming
polls.

However,
economist
Professor
Patrick
Asuming
explains
that
any
discussions
by
a
new
government
with
the
IMF
are
unlikely
to
yield
significant
changes
to
the
programme’s
current
structure.

“As
far
as
I
understand,
I’m
not
sure
there
is
room
for
tweaking
or
renegotiating
per
se,
but
the
IMF
always
engages
with
the
authorities.
Discussions
typically
revolve
around
adjustment
elements,
while
the
essence
of
the
program
remains
unchanged,”
he
explained.

Commenting
on
the
formal
confirmation
from
the
Official
Creditor
Committee
(OCC)
approving
the
government’s
deal
with
Eurobond
holders
on
proposed
terms
to
restructure
approximately
$13.1
billion
in
debt,
Prof.
Assuming
cautioned
the
government
to
exercise
prudence
in
bringing
its
debts
to
sustainable
levels.

“This
is
crucial
for
our
debt
sustainability,
enabling
us
to
reduce
debt
levels
to
the
targeted
55
per
cent
envisioned
in
the
programme,”
he
said.

“Additionally,
it
offers
potential
immediate
and
long-term
benefits
to
the
economy,
depending
on
how
effectively
we
utilize
the
flexibility
provided
by
this
restructuring,”
he
opined.

He
further
cautioned
that:
“if
we
perceive
our
debt
as
sustainable
and
embark
on
further
borrowing,
we
risk
encountering
similar
challenges
in
the
near
future”.




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