SETH TERKPER BELIEVES GOV’T WILL HIT A SNAG WITH DEBT CALCULATION IN IMF NEGOTIATIONS

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Seth Terkper, a former Minister for Finance, has shared his belief that the Government will find it difficult calculating the numerous debts incurred over the period in the debt sustainability analysis with the International Monetary Fund (IMF).

Mr. Terkper has indicated that the debts, as part of the negotiation process, which the Government must table for analysis are so numerous. He said any other debt, which was guaranteed by Parliament will have to be added and will have to be shared on the framework of debt sustainability.

He added that the success of the negotiations depends on a stable economic situation. He opined that the debt sustainability framework puts in perspective the country’s ability to generate foreign exchange to service the foreign debts, and to raise revenue.

He continued that foreign trade and growth probability among other parameters are used over a long period of about ten years plus in the analysis. All that will make the calculations cumbersome for the country to achieve, given our current precarious conditions.

Mr. Seth Terkper concluded that there are too many arrears arising also from nonpayment of domestic and foreign debts on the purchase of crude during the COVID-19 period and arrears owed contractors among others, which all militates against the interest of the Government in the ongoing analysis with the IMF.

The Ministry of Finance announced that the IMF is in the Country to undertake an analysis of our comprehensive debt sustainability. The Ministry added that it is the basis of the Government’s negotiations will include putting together a comprehensive post-Covid-19 economic program.

“The program seeks to establish a macro-fiscal path that ensures debt sustainability and macroeconomic stability, underpinned by key structural reforms and social protection,” it continues.

Mission Chief for Ghana, Stéphane Roudet, led an International Monetary Fund (IMF) staff team to Accra to continue discussions with the Government on policies and reforms that could be supported by an IMF lending arrangement.