Ghana’s return to international capital market in the offing -Dr Amin Adam

The Minister of State at the Finance Ministry, Dr. Mohammed Amin Adam is optimistic that Ghana can return to the international capital market as soon as possible after the government gets an International Monetary Fund (IMF) Board approval by Wednesday, May 17, 2023.

According to him, this will pave the road for Ghana’s return to the international market.

Ghana is on the verge of securing a US$ 3 billion IMF bailout to help with the country’s balance of payment problems, with the first tranche of US$600m expected to be authorized by Wednesday, May 17, and disbursed within a week.

The second tranche of $600 million is scheduled to be authorized following a successful first review of the program, which is expected to occur in November or December, with the remainder distributed in equal tranches of $360 million following semi-annual reviews.

“We will go back to the market because we will leverage on the IMF deal to balance our financing needs. We have development partners supporting, but a chunk of our inflows will come from the market so with the IMF approval, we are very confident that investor confidence in Ghana will increase. The institutions upgrading us will look favorably to Ghana and then as a result of all these, we could return to market very soon”, he said on  May 15.

International rating agencies like Fitch, S&P, and Moody’s have downgraded Ghana’s economic and creditworthiness to junk status amidst poor fiscal policy measures.

The government has already said, a successful IMF program will make Ghana regain access to the international capital market for economic rebound.

“It depends on how quickly we get to sustainable levels. We are hoping at attaining sustainable levels by 2028. If that is achieved, it’s possible. As for borrowing, you can’t say you won’t borrow. In as much we don’t borrow for ourselves so going to the market is a matter of course if the conditions are favorable”, Dr. Adam explained.

The Minister also disclosed that once the country secures the IMF Executive Board approval, Ghana’s economy will bounce back.

“As a government, we have been committed to free information and there is no intention to hide the IMF program from Ghanaians”, he said.

As part of the program, Ghana will also benefit from other donors to support the country’s economic development.