IMF negotiations: We've not failed to reach an agreement with bondholders; we’ve made significant progress – Finance Ministry

The Ministry of Finance has indicated that reports that the country has failed to reach an agreement with bondholders are false.

As part of the implementation of the programme with the International Monetary Fund (IMF), government needs to reach a deal with bondholders in line with requirements for the release of the third tranche of the extended credit facility.

According to the Ministry of Finance, there has been significant progress in the debt restructuring negotiations with bondholders contrary to reports.

A notice from the Ministry on Monday, April 15, said negotiations will continue to ensure an agreement on the final terms consistent with IMF debt sustainability targets is reached.

“No, this is not a failure but part of an ongoing process to arrive at an agreement consistent with debt thresholds under the DSA,” the Finance Ministry said when responding to whether Ghana has failed to reach a debt deal with Bondholders or not.

The notice from the Ministry of Finance continued, “We have made significant progress on the debt restructuring negotiations and the Government of Ghana thanks bondholders for their support in this process.

“We are regrouping to continue the negotiations, towards reaching an agreement on final terms that are consistent with IMF debt sustainability targets.”

Meanwhile, Governor of the Bank of Ghana, Dr. Ernest Addison has indicated that Ghana is reaping substantial macroeconomic dividends thanks to the implementation of the programme with the International Monetary Fund.

The Governor made the statement over the weekend during an engagement with the IMF team for the second review of the steadfast implementation of policy measures under the IMF programme.

“With substantial progress in these measures, we are beginning to reap substantial macroeconomic dividends. Inflation has dropped significantly from a peak of 54 percent at end of 2022 to 23 percent in 2023. The exchange rate remained relatively stable throughout last year, supported by tighter monetary policy and stronger foreign exchange reserves. Economic growth surprised on the upside,” Governor Dr. Ernest Addison said.