The International Monetary Fund (IMF) says, it is too early to predict debt restructure as Ghana starts talks with the Bretton Wood Institution.
The response puts on ice speculations as Ghana starts talks in anticipation to secure a $3 billion loan from the Fund.
According to the International Monetary Fund, the restructuring of Ghana’s debt will be dependent on the outcome of its Debt Sustainability Analysis (DSA) Report.
The IMF Director of Communications, Gerry Rice who disclosed this at a news conference in Washington DC said the DSA report will indicate if there is a need for debt restructuring in the first place and if necessary, how it should be carried out as well as which areas will be affected.
“When a country requests financing from the IMF, we assess whether the country’s policies are consistent with debt sustainability as one of our requirements.
“We still need to conduct a thorough update of the debt situation in Ghana through our Debt Sustainability Analysis.
“The last, I don’t know if it’s useful, I have here the last DSA, Debt Sustainability Analysis. We published this as part of the 2021 Article IV Staff Report with Ghana.
“It said public debt was a sustainable conditional on a rigorous and credible implementation of the authority’s medium-term consolidation plan to put debt on a declining trajectory and ensure continued market access,” Mr Rice stressed.
This, he said will inform the next line of action as government and the Fund remain committed to ensuring no harm is done to the interest of stakeholders as a result of this program.
Reports on possible debt restructure has been rife in the media space, sending panic to the bond market.
Meanwhile, the IMF team are in town to continue official negotiations with government for the loan request.
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