Joseph Jackson, Dalex Finance’s director of business operations, is optimistic about government’s pledge to obtain an IMF bailout by May 2023.
Mr. Jackson asserted that the May deadline for the Minister of Finance Ken Ofori-ending Atta’s disclosure is a more workable date than the original March deadline.
“The May deadline is a lot more realistic than the March deadline was, and in that sense, the May deadline seems to be a lot easier to attain than the March deadline. As the Finance Minister indicated there are still issues such as cocoa bills, dollar bonds, and independent power producers to deal with, this window will provide time for them to be resolved.”
On Friday, April 14, Mr. Ofori-Atta informed Eurobond holders at an Investors Presentation in Washington, DC that the government anticipates receiving IMF Board approval for a $3 billion bailout by the end of May 2023.
“We do at this time expect an IMF board approval in May [2023] and contemplate a rapid negotiation of a Memorandum of Understanding (MoU) with our creditors. We have made significant efforts on all fronts. We hope we could reach an agreement in principle with you our Eurobond holders quickly.”
The financial analyst lauded the government’s domestic debt exchange programme which he said will help the government get enough substance to back its demand for a bailout but however, cautioned there is no way both the IMF and investors will sacrifice to come to Ghana’s rescue.
“The good thing is that I believe the government has learnt from the domestic debt exchange programme and in a few weeks there may be enough substance to take to the IMF Board.
“They are willing to help us, but they will not cut their noses to help us. It is not going to be as easy as walking into a negotiation and asking them to cut their noses to help us, it is not going to happen.”
