Dr. Theo Acheapong
Political risk analyst Dr Teo Acheapong predicted positive outcomes in the future once the debt restructuring is completed.
He believes the indicators so far suggest the country’s previously unpopular economy could have greater potential to attract investors.
“If you look at the numbers sent to us by the statistics bureau, they are still talking about 4 percent growth quarter on quarter in real terms. Also, last night the IMF announced the completion of its second review, which is broadly positive, and they also announced an agreement to restructure the independent power producers’ debt,” he said on Saturday.
“This will not only provide additional financial resources to the country through interest and principal reductions and repayment deferrals, but also allow the country to access additional loans from multinational companies,” the economist noted in a news file.
This came after Finance Minister Mohammed Amin Adamu announced the completion of a debt restructuring plan with Ghana’s official creditors.
The Caraga congressman said the government had successfully restructured $5.1 billion with these creditors and had also completed a $13.1 billion restructuring with Eurobond holders.
“Over the last two weeks, we have concluded negotiations with our official creditors and agreed to a restructuring of $5.1 billion. The government is open to negotiations and we expect to save $2 billion of this amount.”
“Tomorrow morning, as I speak to you, there will be an announcement that we have also completed negotiations with Eurobond holders for $13.1 billion. Folks, please read the details when we make the announcement. We have negotiated a good deal for Ghana. It is $8 billion,” he said.
“Ideally, the government should not be held responsible for individuals’ investment decisions, but this government has been very considerate.”
“Mistakes were made, people were not well informed and did not know who to go to for advice. But we also know that those affected are suffering. We have heard of people dying and some committing suicide.”
“This government has been very compassionate and, first of all, it has given some relief to all those affected. And I want to reiterate that the President has directed that further relief be given, so between now and October, we will be giving GH¢1.5 billion to those affected.”
The government recently secured interest payment deferrals and repayment deadline extensions in debt restructuring agreements with bilateral creditors.
To meet the IMF’s target, the $77 billion economy needs to reduce its debt to 55% of gross domestic product by 2028. The year before Ghana began its restructuring, its debt burden was projected to be 109%.
However, Dr Acheapong suggested that “it may take a little longer to actually see it have a dramatic impact within the timeline that the finance minister is talking about.”
“While I am a little skeptical of the bullish view expressed by the finance minister, there is no doubt that the indicators are starting to move in the right direction.”
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