The discussion over economic strategy intensifies as Ghana approaches the 2024 general elections, with economic analysts suggesting that renegotiating Ghana’s $3 billion bailout program with the International Monetary Fund (IMF) may be exceedingly difficult.
Ghana is currently navigating a three-year Extended Credit Facility (ECF) program, with $1.6 billion already disbursed. The country’s economic stability heavily relies on adhering to the stringent conditions set by the IMF.
Despite hints from National Democratic Congress (NDC) flagbearer John Dramani Mahama about potentially renegotiating the deal if elected president, economist Professor Patrick Asuming explains that any attempts by a new government to engage the IMF are unlikely to result in significant alterations to the current program structure.
“As far as I understand, I’m not sure there is room for tweaking or renegotiating per se, but the IMF always engages with the authorities. Discussions typically revolve around adjustment elements, while the essence of the program remains unchanged,” he explained.
Commenting on the official confirmation from the Official Creditor Committee (OCC) approving the government’s agreement with Eurobond holders on proposed terms to restructure approximately $13.1 billion in debt, Prof. Asuming cautioned the government to exercise prudence in reducing its debts to sustainable levels.
“This is crucial for our debt sustainability, enabling us to reduce debt levels to the targeted 55 per cent envisioned in the programme,” he said.
“Additionally, it offers potential immediate and long-term benefits to the economy, depending on how effectively we utilize the flexibility provided by this restructuring,” he opined.
He further warned that:“if we perceive our debt as sustainable and embark on further borrowing, we risk encountering similar challenges in the near future”.
my Radio G-Live 
