Economy
Rising cost of living is a global crisis
Rising energy prices, rising food costs and supply bottlenecks have pushed countries into a high cost of living crisis around the world.
Global inflation hits a 25-year high
As global inflation hits a 25-year high, many people around the world from both rich and poor countries are dreading the loss of purchasing power following sharp soaring cost of living.
COVID-19 impacts
COVID-19 has hit global supply chains with a combination of pent-up demand and delays to shipping as factories across the world face lockdowns and worker absences.
This has led to prices rising, particularly for raw materials.
Energy costs
Energy costs have been one of the main drivers of what is become the highest inflation in a generation.
$91 per barrel of crude
In recent days, the price of a barrel of US benchmark crude oil hit a seven-year high $91 a barrel, a massive jump of about 36% since December 1, 2021.
The effects of these negative developments have been most devastating on poorer countries with fragile economies.
Rising living costs
Rising living costs have caused alarm among governments and central banks around the world.
Asia not experiencing the sharp price rises
Asia is the only continent not experiencing the sharp price rises seen elsewhere. Across much of Asia, price rises are subdued.
Inflation is an ever-present problem in Africa
Across Africa, inflation is an ever-present problem and the impact of the pandemic has worsened the situation.
Import dependent
One trend that is common among African countries with high inflation rates is that they are mostly import dependent.
Weak exchange rates
When a country imports more than it exports, it naturally becomes susceptible to various economic challenges, including weak exchange rates and high inflation rate.
Dramatic increases in imports
Dramatic increases in the cost of raw materials and shipping cost which translated into higher prices of imported goods have pushed inflation up in Africa, and these have eroded an already weak purchasing power of Africans who receive very law salaries and wages.
Fragile economies of African countries
The fragile economies of African countries have deteriorated as a result of the impact the pandemic is having on the global economy.
Food accounts for 40% of sub-Saharan Africa’s CPI
Food accounts for roughly 40% of sub-Saharan Africa’s consumption basket – a measure of goods and services used to measure consumer price index (CPI) inflation.
Imports dependency fuelling weak local currencies
Many African countries spend billions on food imports and the demand for foreign currencies to import weakens the local currencies, resulting in further inflation.
As most African countries import refined petroleum products, the sharp rise in the prices of petroleum has also increased the cost of living for many Africans.
Situation in OECD countries
The cost of living across the 38 countries in the Organisation for Economic Co-Operation and Development (OECD) jumped by 5.8% in the year to November – the highest rate since May 1996. Rising energy prices are the biggest factor.
27.7% rise in cost of energy in 2021
The cost of energy soared by 27.7% in the OECD area in the year to November – the most since June 1980, when interruptions in the world’s oil supply due to wars in the Middle East caused energy prices to spike.
Highest Eurozone inflation
Eurozone inflation is at 5%, the highest since the single currency was launched more than 20 years ago.
The OECD data came as the global risks report from the World Economic Forum (WEF) showed business leaders and economic experts are increasingly worried about ‘livelihood crises’. (www.thisismoney.co.uk)
Rising cost of living in Eurozone
In European countries, the cost of living is rising as inflation in the Eurozone notched a new record high.
5.1% jump in consumer prices
Consumer prices have jumped 5.1% from January last year, up from 5% in December and surpassing the estimates of analysts.
28.6% rise in energy cost in January 2022
Energy is at the forefront of the rise, as prices soar across the continent and many households struggle to cope with the added cost.
Prices rose by 28.6% in January in the 19 Eurozone countries.
Soaring fossil fuel prices
The increases are being fuelled by soaring fossil fuel prices and highlight European countries’ dependence on them.
Cost of living at 30-year high in UK
The cost of living in the United Kingdom (UK) hit a fresh 30-year high in January 2022 as energy, fuel and food prices continued to soar and retailers reined in seasonal discounts.
5.5% surge in prices
Prices surged by 5.5% in the 12 months to January, up from 5.4% in December, increasing the squeeze on household budgets.
Inflation rising faster than wages
Inflation is now rising faster than wages and is expected to climb above 7% this year.
Companies pass on increases to consumers
Since pandemic restrictions were eased last year, companies have faced higher wage, shipping and energy costs which they have passed on to customers.
19% increase in electricity bills, 28% increase in gas bills
The Office for National Statistics (ONS) said electricity bills were up 19% in the year to January and gas bills up by 28%.
Cost of household staples rising by 15%-37%
The cost of household staples is also rising, with pasta prices up 15%, cooking oil up 16% and margarine soaring 37% in the year to January, squeezing household budgets.
Inflation at 30-year high
Inflation – which has been at a 30-year high since December – is set to get worse in April when the energy price cap is lifted.
Average household fuel bill up by £693 in UK
It will push up the average household fuel bill up by £693 a year in England, Scotland and Wales, while a planned rise in National Insurance will also hit people’s pockets.
Bank of England has already put up interest rates twice
The Bank of England has already put up interest rates twice since December in a bid to tame inflation and could raise them again to 0.75% soon. (www.bbc.com)
https://www.bbc.com/news/business-60390527
COVID-19 forcing Canadians further into debt: survey
The rising cost of living and added burden of COVID-19 are forcing Canadians further into debt, a new survey suggests.
Quality of life is diminishing further
The 2021 BDO Affordability Index, a survey done annually that examines how affordable life is in Canada, suggests that many Canadians’ quality of life is diminishing further as more debt is accumulated and the pandemic drags on.
43% added to existing debt due to COVID-19
The survey, conducted by Angus Reid Group in partnership with BDO Debt Solutions, found that 43% of Canadians added to their existing debt because of the pandemic, up four per cent compared to last year.
New debt made standard of living worse
The survey reported that 26%of Canadians incurred at least one new type of debt, the most common being credit card debt, and 70% of these Canadians said the new debt has made their standard of living worse.
51% sure of restoring standard of living to pre-pandemic levels
According to the BDO Affordability Index, only 51% of this group said they will be able to restore their standard of living to pre-pandemic levels.
Increase spending prevented savings
Of the 42% of Canadians who were saving less or not at all during the pandemic, 57% said it was due to an increase in spending on groceries and housing, while 51% said it was due to reduced income or job loss.
23% find it challenging to put food on the table
BDO says 23% of Canadians find it challenging to put food on the table for themselves and their families, up four per cent compared to last year.
The survey reports that 31% of those surveyed indicated that paying for utilities is a challenge and 35% said the same about transportation and clothing costs. (www.ctvnews.ca)
7.5% inflation is the fastest rate in almost 40 years
Prices in the US are rising at their fastest rate in almost 40 years, as inflation rate rose to 7.5% in January, its highest level since 1982.
Inflation rate hovered above 6% in 3 months
December’s increase marked the third month in a row that the US annual inflation rate has hovered above 6% – well above the 2% target of policymakers.
Food, electricity, and shelter are responsible
Food, electricity, and shelter are the biggest factors driving up the cost of living.
Housing (4.1%), groceries (6.5%) increases
Housing costs were up 4.1% year-on-year, while the cost of groceries rose 6.5% – compared to a 1.5% annual average over the last 10 years.
Nearly 30% rise in energy costs in 12 months
Over 12 months energy costs are up by nearly 30% and have returned to their upward trend in recent days
But even if volatile items like food and energy are stripped out, the index still rose by 6%, the highest level for the so-called core rate in 40 years.
Rise is above expectation of economists
Economists had been expecting the rate to rise to a new multi-decade high, but the 7.5% figure was even higher than they were anticipating.
A recent survey by insurance company Allianz Life found that an increasing number of Americans are worried about how much things cost.
Two-thirds of Americans (67%) said they are worried about the rising cost of living in 2021, an 8-point increase from the three in five people who said the same thing in 2020.
The number of Americans who reported worrying about healthcare costs also increased, from 65% to 71%.
Asia is the global inflation exception
Asia is the only continent not experiencing the sharp price rises seen elsewhere. Across much of Asia, price rises are subdued.
1.5% CPI in China
In China, the consumer price index is up by 1.5% compared with a year ago, while in Japan, as usual, inflation is roughly zero.
3% CPI in Australia
In Australia, the headline CPI may be up by 3%, but underlying inflation of 2.1% is towards the bottom of the central bank’s target range.
Inflation above 5% Sri Lanka and Pakistan
Only two big emerging markets in Asia have inflation running above 5% – Sri Lanka and Pakistan – compared with many in Europe and South America.
Seen from Tokyo, Beijing or Jakarta, the global surge in inflation does not look global at all.
This is true even though Asia imports a lot of energy and has suffered the same jump in prices for oil, gas, coal and other commodities as everywhere else in the world.
The reason Asia’s inflation is mild and not severe comes down to one simple factor: it handled the COVID-19 pandemic better than the rest of the world.
Across most of the region, countries managed to avoid compulsory lockdowns altogether (South Korea); limit them in scope and duration (China and Taiwan); or delay such measures until deep into 2021 when vaccines were becoming available (New Zealand).
The consequences of this relative success are now playing out in several ways.
On the demand side of the economy, Asia experienced fewer of the dramatic swings in consumption from services to goods and back again that marked the experience of the US and Europe, as they went into lockdown and came back out again.
If you were never locked up at home, you never felt the need to buy a treadmill, a new television and enough lumber to deck the back yard.
If you could keep up regular haircuts, dental checks and drinks with friends, meanwhile, you had no need to rush out to the hairdresser, the dentist and the nearest bar when the economy reopened.
Japanese firms have so far largely absorbed the rising costs.
They are afraid that passing the increase along to consumers via higher prices will sap household spending.
Japan reported in September that consumer prices rose by 0.1%, the first uptick in 18 months.
China is the world’s largest exporter of goods and a critical link in global supply chains. (www.ft.com)
https://www.ft.com/content/64864c6e-476b-44d1-92f2-69981272a55e
- VALCO workers asking for dollar indexed salaries untenable – 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months – 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry – 18 October 2022
Government says it is confident of getting financing assurances from its external creditors in a short time to secure a Management Board approval from the International Monetary Fund (IMF).
Restoring debt sustainability
This follows successful talks with China and Paris Clubs with a call by the International Monetary Fund (IMF) asking all bilateral creditors to support Ghana’s efforts to restore debt sustainability, as the country works towards presenting its economic programme for IMF Executive Board approval.
Positive and encouraging meetings in China
“So far had very positive and encouraging meetings in China,” the Ministry of Finance said in a Tweet on Friday.
Outstanding domestic revenue bills
“Looking forward to securing external assurances very soon, even as we pass our outstanding domestic revenue bills back home. Great progress on all fronts,” the Tweet added.
Financing assurances
Director of Communications at the IMF, Julie Kozack, stressed the importance of Ghana securing financing assurances from partners and creditors, as a necessary step towards the presentation of its programme $3 billion request to the IMF’s Executive Board for approval.
Bilateral creditors
“We’re calling on bilateral creditors to support Ghana’s effort to restore debt sustainability, form an official creditor committee, and deliver the necessary financing assurances as soon as possible,” Madam Kozack said at a news conference in Washington DC in the United States of America.
“While the IMF is engaging the Ghanaian authorities on the progress made on its request, the Fund is also seeking the assurances from Ghana’s partners,” she added.
Objectives of IMF prograame
The $3 billion IMF programme aims to support common efforts to restore macroeconomic stability, debt sustainability, while also protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive growth.
5 agreed Prior Actions
Out of the five agreed Prior Actions in the Staff Level Agreement government has already completed three.
3 agreed Prior Actions fulfilled
These are tariff adjustment by the Public Utilities Regulatory Commission (PURC), Publication of the Auditor-General’s Report on COVID-19 spending, as well as onboarding of Ghana Education Trust Fund (GETFund), District Assemblies Common Fund (DACF) and Road Fund on the Ghana integrated financial management information system (GIFMIS).
The fourth is the passage of the Income Tax (Amendment) Bill, Excise Duty and Excise Tax Stamp (Amendment) Bills which parliament is expected to do this week.
GH₵83 billion DDEP completed
A Domestic Debt Exchange Programme (DDEP) swapped a total of GH₵83 billion worth of old bonds for new ones with the expectation of finishing similar exercise with its external creditors made up of bilateral partners and Eurobond investors.
IMF MD happy with progress
Managing Director of the IMF, Kristalina Georgieva, had said the Fund was happy with Ghana’s progress to present its SLA for the Fund’s review and approval.
Last week, China’s Foreign Ministry Spokesperson Wang Wenbin has stated that China attaches great importance to resolving Ghana’s debt issues and understands the difficulties facing the country at the moment.
Enhanced communication
“We would like to enhance communication with Ghana to work out a proper settlement through consultation,” he said.
Joint efforts of international partners required to resolve debt issues
He pointed out that properly resolving the issues concerning Ghana’s debt requires the joint efforts of Ghana and all international partners.
Regular Press Conference
Wenbin made the remark a Regular Press Conference held on March 22, 2023, in response to a question on Ghana’s finance minister visiting Beijing for a proposed restructuring of Ghana’s debt.
Ghana-China meeting confirmed
Wenbin confirmed a planned meeting between a high powered Ghanaian delegation led by Finance Minister Ken Ofori-Atta and officials of competent departments of China on bilateral cooperation in relevant areas.
Institutions the delegation will meet
The delegation is expected to hold discussions with officials of the Finance Ministry of China, Central Bank of China, and China’s Eximbank, principally over how to cross the debt restructuring line with China, ideally as part of the common framework with the Paris Club.
Key stakeholders in debt relief efforts
Wenbin stated that China always believes that multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, need to participate in developing countries’ debt relief efforts.
China’s loans account for less than 5% of Ghana’s total public debt
He stressed that official bilateral loans related to China only account for less than five percent of Ghana’s external debt.
$54bn total public debt stock
Ghana’s total public debt stock stands at $54 billion, out of which $28 billion is owed to foreign creditors.
Ghana owes China $1.9bn
Out of Ghana’s $8.5 billion bilateral loans, about $1.9 billion is owed to China.
Important cooperation partner in Africa
Wenbin described Ghana as China’s important cooperation partner in Africa.
Cooperation yielded tangible benefits to both sides
According to him, in recent years, practical cooperation between the two countries has yielded fruitful outcomes and brought tangible benefits to both sides.
Chinese Delegation visited Ghana earlier
In the first week of March this year, a Chinese Delegation was in Ghana for a 3-Day mission to engage the Government of Ghana, following a request for the restructuring of Ghana’s $1.9 billion debt owed to China.
Delegation examined indebtedness to China
The meeting between officials of the Ministry of Finance and their counterparts from China examined Ghana’s indebtedness to China and the possible ways the Asian giant can support the government’s external debt restructuring – a precursor to a bailout from the IMF to resuscitate the economy.
Data sharing
There was data sharing between the two governments, with discussions being held at the technical level, on the parameters of an effective debt treatment.
Ghana’s planned Mission to China
The team visited ahead of Ghana’s planned Mission to China, all in line with ongoing negotiations for a sovereign debt treatment.
Ghana seeking extension of maturities, debt servicing, lower interest rates
Information indicates that Ghana seeking among other reliefs, an extension of the moratorium on debt servicing; an extension of maturities; and lower interest rates.
$3bn staff-level agreement reached in December 2022
In December 2022, the government reached a staff-level agreement with the fund and is now left with board-level approval before it can access the $3 billion support.
Restructuring of domestic and external debt
However, the board-level approval is hinged on the country’s ability to restructure its domestic and external debt.
China remains a key partner for Ghana and it has consistently been a crucial part of the country’s socioeconomic development.
China had supported the country through vital projects that spurred growth and job creation nationwide.
The Chinese delegation, as part of the 3-day Mission met with the Vice-President, Alhaji Dr Mahamudu Bawumia, the Minister for Finance, Mr Ken Ofori-Atta, and technical teams from the Ministry of Finance.
The Chinese Ambassador to Ghana, Mr Lu Kun, also hosted the delegation at a luncheon yesterday.
In attendance were members of the Chinese delegation, the Minister for Finance, Mr Ken Ofori-Atta; Minister of Foreign Affairs, Ms Shirley Ayorkor Botchwey; Ghana’s Ambassador to China, Dr Winfred Nii Okai Hammond, and officials of the Ministry of Finance.
- VALCO workers asking for dollar indexed salaries untenable – 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months – 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry – 18 October 2022
China’s Foreign Ministry Spokesperson Wang Wenbin has stated that China attaches great importance to resolving Ghana’s debt issues and understands the difficulties facing the country at the moment.
Enhanced communication
“We would like to enhance communication with Ghana to work out a proper settlement through consultation,” he said.
Joint efforts of international partners required to resolve debt issues
He pointed out that properly resolving the issues concerning Ghana’s debt requires the joint efforts of Ghana and all international partners.
Regular Press Conference
Wenbin made the remark a Regular Press Conference held on March 22, 2023, in response to a question on Ghana’s finance minister visiting Beijing for a proposed restructuring of Ghana’s debt.
Ghana-China meeting confirmed
Wenbin confirmed a planned meeting between a high powered Ghanaian delegation led by Finance Minister Ken Ofori-Atta and officials of competent departments of China on bilateral cooperation in relevant areas.
Institutions the delegation will meet
The delegation is expected to hold discussions with officials of the Finance Ministry of China, Central Bank of China, and China’s Eximbank, principally over how to cross the debt restructuring line with China, ideally as part of the common framework with the Paris Club.
Key stakeholders in debt relief efforts
Wenbin stated that China always believes that multilateral financial institutions and commercial lenders, who are the main creditors for developing countries, need to participate in developing countries’ debt relief efforts.
China’s loans account for less than 5% of Ghana’s total public debt
He stressed that official bilateral loans related to China only account for less than five percent of Ghana’s external debt.
$54bn total public debt stock
Ghana’s total public debt stock stands at $54 billion, out of which $28 billion is owed to foreign creditors.
Ghana owes China $1.9bn
Out of Ghana’s $8.5 billion bilateral loans, about $1.9 billion is owed to China.
Important cooperation partner in Africa
Wenbin described Ghana as China’s important cooperation partner in Africa.
Cooperation yielded tangible benefits to both sides
According to him, in recent years, practical cooperation between the two countries has yielded fruitful outcomes and brought tangible benefits to both sides.
Chinese Delegation visited Ghana earlier
In the first week of March this year, a Chinese Delegation was in Ghana for a 3-Day mission to engage the Government of Ghana, following a request for the restructuring of Ghana’s $1.9 billion debt owed to China.
Delegation examined indebtedness to China
The meeting between officials of the Ministry of Finance and their counterparts from China examined Ghana’s indebtedness to China and the possible ways the Asian giant can support the government’s external debt restructuring – a precursor to a bailout from the IMF to resuscitate the economy.
Data sharing
There was data sharing between the two governments, with discussions being held at the technical level, on the parameters of an effective debt treatment.
Ghana’s planned Mission to China
The team visited ahead of Ghana’s planned Mission to China, all in line with ongoing negotiations for a sovereign debt treatment.
Ghana seeking extension of maturities, debt servicing, lower interest rates
Information indicates that Ghana seeking among other reliefs, an extension of the moratorium on debt servicing; an extension of maturities; and lower interest rates.
$3bn staff-level agreement reached in December 2022
In December 2022, the government reached a staff-level agreement with the fund and is now left with board-level approval before it can access the $3 billion support.
Restructuring of domestic and external debt
However, the board-level approval is hinged on the country’s ability to restructure its domestic and external debt.
China remains a key partner for Ghana and it has consistently been a crucial part of the country’s socioeconomic development.
China had supported the country through vital projects that spurred growth and job creation nationwide.
The Chinese delegation, as part of the 3-day Mission met with the Vice-President, Alhaji Dr Mahamudu Bawumia, the Minister for Finance, Mr Ken Ofori-Atta, and technical teams from the Ministry of Finance.
The Chinese Ambassador to Ghana, Mr Lu Kun, also hosted the delegation at a luncheon yesterday.
In attendance were members of the Chinese delegation, the Minister for Finance, Mr Ken Ofori-Atta; Minister of Foreign Affairs, Ms Shirley Ayorkor Botchwey; Ghana’s Ambassador to China, Dr Winfred Nii Okai Hammond, and officials of the Ministry of Finance.
- VALCO workers asking for dollar indexed salaries untenable – 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months – 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry – 18 October 2022
For the Board of the International Monetary Fund (IMF) to approve Ghana’s $3 billion bailout at the end of this month, Ghana needs to achieve three critical milestones this week.
Ghana has started to actively engage external debtors with the view to getting debt cancellation, especially from the Paris club of creditors.
The first stop of a government delegation seeking debt restructuring will be in China as that country holds $1.7 billion out of Ghana’s $5.7 billion bilateral debt.
Delegation to China
Finance Minister, Ken Ofori-Atta left Accra yesterday leading a high-powered government delegation to China to negotiate for the acceptance of the country’s proposal for debt cancellation with the Paris club.
The delegation will hold discussions with officials of the finance ministry of China, the central bank of China, and China’s Eximbank, principally over how to cross the debt restructuring line with China, ideally as part of the common framework with the Paris Club, which also includes Russia.
The Chinese who are not members of the Paris Club have so far dragged their feet.
Other non-member creditors like Saudi Arabia and India on the other hand, are expected to join the Paris Club meetings.
Delegation to meet Paris Club in France
From China, the delegation will travel to Paris in France to hold discussions with the Paris Club tomorrow, Tuesday, March 21, 2023.
That meeting is most critical in determining how quickly Ghana can secure the IMF deal.
In January, all member countries of the G20 group of economic powers said they are on board for a restructuring of Ghana’s debt and Paris Club members are ready to take the first step toward forming a creditor committee.
The work of the Committee will, typically, take about three weeks.
Tuesday’s meeting will set the ball rolling and give Ghana the greatest indication yet as to how quickly the anticipated IMF deal can be closed.
Forming a creditor committee took a couple months for previous cases, however the official said the Paris Club members were all ready to do so for Ghana and hoped it could be done in a month.
The official said Ghana’s case was less complex than Zambia, whose case the official said was progressing after struggling since it became the first African country to default after the pandemic.
The programme, which was launched in 2020, was supposed to streamline the process of coordinating among creditor governments the restructuring of low-income countries’ debts after the pandemic.
However, progress has proven glacial for the first cases; a situation Western countries say is in part due to a lack of restructuring experience by China, a non-Paris Club G20 creditor that has become a major lender in recent years.
3 Bills Parliament must pass
On Thursday Parliament will vote on three key revenue bills which must be passed to indicate Ghana’s seriousness and doing better than being below the continental average on revenue mobilisation.
The bills are the Income Tax (Amendment) Bill, the Excise Duty & Excise Tax Stamp (Amendment) Bills and the Growth and Sustainability Levy Bill.
The passage of these bills and a successful meeting with the Paris Club are the most crucial things the IMF Board will require to approval the deal for Ghana.
Ghanaians now can only wait and see the timetable to be set by the 22-member nations Paris Club, which holds majority of the country’s bilateral debts.
But, Ghanaian officials have been having prior engagements with the creditor nations involved, why should all help speed up the process.
Ghana hopes Ofori-Atta’s trip can help get China to join the Paris Club meetings, which will agree on a common framework for all its member creditors, including Belgium, UK, USA, Japan, Denmark and the Netherlands.
Alternatively, failing which, Ghana can do a separate bilateral deal with China, but on similar principles of restructuring. That is also at the heart of the Ghanaian delegation’s business in China this week. The team should return next Sunday.
Parliamentary action
The nation’s fate after the successful implementation of the Domestic Debt Exchange Programme is also now heavily dependent on Parliament who meet this Thursday 23 March to vote on the three revenue bills.
Members of Parliament from the National Democratic Congress caucus have been directed by the NDC secretariat to vote against the three bills.
Minority Leader, Cassiel Ato Forson last week suggested that the seeming delay in agreeing on a debt restructuring deal with China is what could kill the IMF deal but was silent on the bills the House is required to pass.
The China factor
Ofori-Atta who left Accra Sunday afternoon will first stop over in Addis Ababa, Ethiopia, to attend the African Finance Ministers’ meeting, which will revolve around the continent’s suffocating debts.
He will meet United Nations Economic Commission for Africa (UNECA) as well, again on concerns over Africa’s growing indebtedness, especially since Covid-19.
Negotiation with external creditors
Negotiations with Eurobond holders are said to have been significantly smoothened since the successful completion of the Domestic Debt Exchange Programme (DDEP) and in principle, a framework of a deal with holders of Eurobond has been fashioned out.
Ghanaian officials have met with all executive directors of the IMF, including Germany, the United Kingdom, France, Japan, and the USA.
Ghana will most likely be looking after the Spring Meetings of the IMF and World Bank in Washington DC, which will take place from April 10 to 16 2023, for the IMF Executive Board.
The IMF and Ghana reached a staff-level agreement on the U$3 billion loan deal in December 2022. Ghana was expected to conclude its domestic debt restructuring by end of January but that was also delayed due to an understandable struggle with bondholders and their representatives on the nature, structure and scope of the domestic debt exchange exercise.
The decision by the Paris Club to only now meet on Ghana has also meant that the IMF deal will have to wait for the work of the Paris Club’s Creditors Committee to be completed on the common framework first.
- VALCO workers asking for dollar indexed salaries untenable – 4 November 2022
- 2022 Fuel price increases: Petrol-94%, diesel-136% in 10 months – 19 October 2022
- Coalition: New producer price too low, it will kill cocoa industry – 18 October 2022
MTN cuts sod for $25m ‘Ghana ICT Hub’
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