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We are focused on transparent engagement with IMF - Finance Minister
Ken Ofori-Atta

We are focused on transparent engagement with IMF - Finance Minister

The government is committed to protecting the financial sector and would, therefore, not take unilateral decisions that will undermine the smooth operation of the sector, the Minister of Finance, Ken Ofori-Atta has said.

Addressing a press conference in Accra, Mr Ofori-Atta assured the financial sector and the general public that transparent engagements would be undertaken on issues of mutual interest. 

The minister used the press conference to comment on topical issues, including ongoing discussions of a potential restructuring of the domestic debt.

News of debt restructuring surfaced last week when some media houses reported that the government was set to start discussions with local bond holders on how to restructure their holdings.

The Minister said said at the event that such reports were false, preemptive and disruptive to the financial sector and ongoing negotiations with the IMF for a fund-assisted programme.

He dismissed allegations that the government and the International Monetary Fund (IMF) are working at restructuring the country’s domestic debts.

Mr Ofori-Atta said having a sustainable debt path was a pre-requisite for the IMF programme and efforts to authenticate that were underway. 

In that regard, he said a DSA by the IMF/World Bank and the Ghana team aimed at ascertaining the level and impact of the debt on the economy was ongoing, thereby making talk of a debt restructuring far-fetched.

“Ladies and gentlemen, we simply have not reached any agreement with the fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis (DSA). “The government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-tract the IMF negotiation process,” the minister said.

Preemptive

The finance minister used the meeting with the press to comment on topical issues, including ongoing discussions of a potential restructuring of the public domestic debt.

News of debt restructuring surfaced last week when some media houses reported that the government was set to start discussions with local government bond and treasury holders on how to restructure their holdings.

No decision on debt

Mr Ofori-Atta dismissed allegations that the government and the IMF were working at restructuring the country's domestic debts, stressing that no decision had been taken on the national debt.

“We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt sustainability analysis.

“Government shall continue to actively engage all stakeholders in a clear and transparent manner as we seek to fast-track the IMF negotiation process,” the finance minister stated.

He said such reports were false, preemptive and disruptive of the financial sector and ongoing negotiations with the IMF.

Protecting financial sector

Mr Ofori-Atta gave an assurance that the government was committed to protecting the financial sector and would, therefore, not take unilateral decisions that risked undermining the smooth operation of the industry.

He, therefore, cautioned the public to be measured in the public discourse and be minded not to denigrate their own country.

“We welcome all contribution to this great public debate but we must be careful to build and not to tear down our nation,” the finance minister cautioned.

Mr Ofori-Atta said having a sustainable debt path was a prerequisite for the IMF programme and efforts to authenticate that were underway.

In that regard, he said debt sustainability analysis was being conducted by the IMF, the World Bank and the Ghana team aimed at ascertaining the level and impact of the debt on the economy, thereby making talk of a debt restructuring far-fetched.

Viable financial sector

Mr Ofori-Atta said the country needed a viable domestic financial system to support its development programme, especially at a time when access to the international capital market was limited.

“Therefore, everything must, and will be done, to protect our financial sector; and there must be room for a win-win conversation through extensive stakeholder engagement with both our domestic and external investors.

“Ghana has always had a collaborative approach with its partners and we shall, I am confident, come out with an ‘historic arrangement,'” the minister said.

He said it was this same government that protected the savings of 4.6 million Ghanaian depositors with the reform of the banking and financial sector, even in its early days.

“We owe it to the economy and Ghanaians to keep protecting it,” the finance minister added.

Five-member committee

Mr Ofori-Atta said the sanctity and the functioning of the financial system was non-negotiable and the government needed the support and trust of all Ghanaians to deliver that.

“Let us join hands to get this done. The great Celtic Miracle in Ireland in the 1980s was the result of such collaborations, especially with labour, and we shall also be blessed with the Ghana miracle,” the minister of finance urged.

Fast-track negotiations

Providing updates on the negotiation with the IMF, Mr Ofori-Atta said it started last Monday and would continue till October 6, saying the discussions were advancing smoothly.

He, however, disclosed that the government and the IMF were working at fast-tracking the negotiations to make way for a deal by December.

“In line with President Nana Addo Dankwa Akufo-Addo's dialogue with the IMF Managing Director, Kristalina Georgieva, negotiations will be fast-tracked to ensure that key aspects of the programme are reflected in the 2023 Annual Budget Statement in November 2022,” Mr Ofori-Atta stated.

Comprehensive package

“The government is committed to ensuring that a comprehensive package is negotiated with the aim of restoring and sustaining macroeconomic stability, ensuring durable and inclusive growth and promoting social protection,” he said..

Mr Ofori-Atta added that the government team and the IMF team were also discussing policy measures and structural reforms proposed in the economic programme aimed at addressing the economic challenges facing the country..

That was towards restoring and sustaining macroeconomic stability, fiscal and debt sustainability, as well as promoting durable and inclusive growth and social protection,” the minister said.

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