The business community in Ghana is of hopeful of rebound the investor confidence in the coming days, following the announcement by the government that they have secured a deal with external creditors.
The agreement to restructure the country’s $5.4 billion debts owed to external creditors will help to free up some resources for the government to engage in economic activities that will propel growth, two economists have said.
They said apart from unlocking the release of the second tranche of $600 million from the International Monetary Fund (IMF) and funding from other development partners, it would also help shore up the country’s forex reserves, which would in turn help cushion the local currency.
The two economists are the Director of the Institute of Statistical, Social and Economic Research, Professor Peter Quartey, and the Head of Research at the Institute of Fiscal Studies, Dr. Said Boakye.
The Ministry of Finance on January 12, announced that the country had reached an agreement with its Official Creditors under the G20 Common Framework, on a comprehensive Debt Treatment Beyond the Debt Service Suspension Initiative (DSSI).
This follows the successful completion of the Domestic Debt Exchange Program (DDEP) in 2023, which saw the country swap domestic bonds worth GH¢82 billion for 12 new bonds at reduced coupon rates and longer tenors.
It also comes eight months after the Executive Board of the IMF approved the country’s program which aims to restore debt sustainability and three months after the country had reached a staff level agreement on the first review of the program.
Reacting to this, the president of the Ghana Union of Traders Association(GUTA) Dr. Joseph Obeng said, the deal will send a good signal to the investor community:
LISTEN TO DR. JOSEPH OBENG IN THE AUDIO BELOW
Story by Osei Akoto(Teacher Kojo) #Ahotoronline.com
