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Creditors Including Paris Club and China Come Together to Establish Committee for IMF Bailout

Ghana’s Finance Minister, Ken Ofori-Atta, has announced that the country has made significant progress in its discussions for debt treatment with the Paris Club and other bilateral creditors. After a meeting on March 21, 2023, with Ghana’s creditors, the Paris Club and other creditors, including China, India, Saudi Arabia, and Turkey, agreed to form the Official Creditor Committee (OCC) and provide financing assurances to the International Monetary Fund (IMF) to pave the way for an IMF executive board approval of Ghana’s programme by early May.

During his visit to China, Ofori-Atta requested that China co-chair the Official Creditor Committee, and Chinese Finance Minister, Liu Kun, expressed confidence in Ghana’s economic management and long-term economic viability. He further said that China felt a responsibility to help Ghana as it seeks debt servicing relief. Kun added that Ghana faced economic difficulties from the COVID-19 pandemic, geopolitical tensions, and interest rate hikes in advanced countries that had a contagion effect on developing countries.

Chinese officials committed to help Ghana overcome its current short-term liquidity challenges and support the country’s medium and long-term development aspirations. They emphasized the importance of promoting debt sustainability and sustainable development and advocated for more concessional and grant funding for Ghana, particularly at this time. Vice President of China Exim bank, Zhang Wencai, stated that Ghana needed more concessional and grant funding from creditors, and multilateral banks should do more for Ghana.

This week, Ghana’s parliament will consider three key revenue measures, whose approval is expected to generate GH¢4.4 billion in domestic revenues. This action is crucial for Ghana to trigger an IMF Executive Board approval of a $3 billion facility to ease the country’s economic difficulties

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