The creditor committee for Ghana considering its proposal to the IMF is expected to be co-chaired by China and France, an official statement says
China and the Paris Club have okayed Ghana’s request for support from the International Monetary Fund (IMF), an official statement released today (Friday 12 May 2023) says.
The creditor committee, made up of countries with eligible debt claims on Ghana, is now formally established.
The creditor committee is expected to be co-chaired by China and France, an official statement says.
The said, “The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the ‘Common Framework for Debt Treatments beyond the DSSI’ endorsed under the Saudi G20 presidency in November 2020, which was also endorsed by the Paris Club.
“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to maximise their support for Ghana to meet its
long-term financial needs,” the statement said.
Read the full statement from the Creditor Committee for Ghana:
Joint statement of the Creditor Committee for Ghana under theCommon Framework for Debt Treatments beyond the DSSI
Statement
12 May 2023
The creditor committee for Ghana formed by countries with eligible claims on Ghana (hereinafter “the creditor committee”) has been formally established on12 May 2023, co-chaired by China and France. The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a
debt treatment under the “Common Framework for Debt Treatments beyond the DSSI” endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club.
The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs. Consistent with their national laws and internal procedures, creditor committee members are committed to negotiate with the Republic of Ghana terms of are structuring of their claims to be finalized in a Memorandum of Understanding(MoU), in accordance with the “Common Framework for Debt Treatments beyond the DSSI”.
The creditor committee stresses that the Ghanaian authorities are expected toseek from all private creditors and other official bilateral creditors debttreatments on terms at least as favorable as those being considered by thecreditor committee, in line with the comparability of treatment principle.Consequently, the creditor committee urges private creditors and other officialbilateral creditors to commit without delay to negotiate with Ghana such debttreatments that are crucial to ensure the full effectiveness of the debt treatmentfor Ghana under the Common Framework.
Background notes
1. The members of the creditor committee are representatives of countries with eligible claims on Ghana.
2. Observers at the meeting were representatives of the International Monetary Fund and the World Bank Group.
Ghana secured a US$3 billion staff-level agreement with the International Monetary Fund in mid-December.
“Quick approval”
A spokeswoman for the IMF, Julie Kozack, told a news briefing on Thursday (11 May) that the Fund is hopeful its executive board can consider the Ghana programme quickly, once enough official bilateral creditor assurances have been secured.
The budgetary support package was agreed at IMF staff level in December.
“We have seen strong progress toward creditors delivering on these financing assurances and we’re hopeful that they can be delivered very rapidly,” Kozack said.
