Ghana’s IMF programme: Paris Club, China, other creditors agree to form OCC

The Paris Club, China, India, Saudi Arabia, and Turkey have agreed to form the Official Creditor Committee (OCC) and provide financing assurances for Ghana to the International Monetary Fund as soon as possible, in order to clear the path for a Fund Executive Board approval by early May 2023.

This was divulged by Finance Minister, Ken Ofori-Atta, after Ghana made progress with China in negotiating for a debt restructuring.

Mr. Ofori-Atta, leading a high-level government delegation to China last week, also requested for China to co-chair the Official Creditor Committee.

The Finance Minister of China, Liu Kun, on his part said that his country has confidence in Mr. Ofori-Atta in managing the Ghanaian economy, and that China would help Ghana.

Mr. Kun said he wanted to ensure that Ghana’s external debt treatment request was considered expeditiously.

Minister Kun said “we know that these are short-term challenges which we as responsible creditors, remain committed to resolving”.

“The long-standing and prosperous relationship between Ghana and China imposes on us a responsibility to help,” the Chinese Finance Minister added.

He added that the Chinese officials are committed to helping Ghana resolve the current short-term liquidity challenges and continue to support Ghana’s medium and long-term development aspirations.

According to him, China believed in promoting debt sustainability and sustainable development, and would advocate for more concessional and grant funding for Ghana, especially at this time.

“Ghana needs more concessional and grant fund from creditors”, said Mr. Zhang Wencai, Vice President of China Exim bank, adding that “the Multilateral Banks should therefore do more for Ghana.”