Ghana’s economy is on the path of growth and stability and showing strong signs of recovery despite the recent global economic downturn, the Finance Minister, Dr Mohammed Amin Adam, stated.
He said inflation was trending down and growth in the first quarter of the year had been robust at 4.7 per cent.
The Finance Minister said the growth in the first quarter soared higher than it was initially programmed and the highest since the first quarter of 2022, and better than the 3.1 per cent recorded in the same period last year.
The Minister of Finance, Dr Mohammed Amin Adam, stated this yesterday in Accra when he presented an update on the economy and the IMF-supported Post COVID-19 Economic Growth programme, particularly the second review in a joint press conference organised by the Ministry of Finance, Bank of Ghana and the IMF.
He said the macroeconomic environment continued to remain stable as the government implements the IMF programme.
“Inflation is declining with a strong disinflation process since the beginning of 2023 in response to the ongoing fiscal consolidation, appropriate tightening of monetary policy and relative stability in the exchange rate,” he stated.
Dr Adam said there was hope at the end of the tunnel and said the government would continue to work to bring stability to the economy and prosperity to the citizens.
The Finance Minister commended Ghanaians for their patience and in this difficult period as the government work to reset the economy.
Dr Adam touched on number of issues including the negotiation with the Independent Power Producers (IPPs) and said government had successfully negotiated with the IPPs to restructure the $1 billion debt owed them to restore stability in power production.
The Finance Minister said Ghana has received a debt cancellation of $4.7 billion as a result of its debt restructuring with Eurobond holders, adding that the country was enjoying a debt relief of $4.4 billion from the Eurobond holders between 2023 and 2026 due to the restructuring of the $13.1 billion the government owed the international creditors.
He said the country had also enjoyed a debt relief of $2.8 billion with its official and bilateral creditors due to the deferred payment of interest and principal on the $5.1 billion it owed the official and bilateral creditors.
Mr Adam explained that the country enjoyed the debt cancellation of $4.7 billion from the Eurobond holders due to the 37 per cent haircut the Eurobond holders suffered.
He also said due to the deferred payment of the principal and interest on the $13.1 billion held by the Eurobond holders, the country was enjoying debt savings of $4.4 billion between 2023 and 2026.
“This achievement is significant, given the ambitious timeline and the fact that it is the fastest agreement reached under the Common Framework since its inception in 2020. The time from public announcement of an intention to restructure to when an agreement in principle is reached for Ghana was 18 months compared to Mozambique (30 months), Suriname (30 months), Chad (20 months), and Sri Lanka (ongoing for two years and two months so far,” the Minister stated.
The Governor of Bank of Ghana, Dr Ernest Addison, in remarks said the Ghanaian authorities had made unprecedented efforts to address the economic challenges facing the economy, saying there were “clear signs of economic stabilisation.”
He said the debt restructuring coupled with the expected inflow from the IMF, the World Bank and other international partners would help stabilise the economy and the currency, which had come under pressure in recent times.
Dr Addison explained that in addition to BoG’s current Gross International Reserves of more than $6.6 billion, his outfit had added additional $907 million to its reserves from January this year coming from IMF, World Bank and other sources.
The IMF Mission Chief to Ghana, Stephane Roudet, for his part said Ghana’s implementation of the IMF Extended Credit Facility had been strong and remarkable.
He said the country had achieved all the quantitative indicators and made “significant headway in its debt restructuring exercise.”
BY KINGSLEY ASARE
The post Joint Finance Ministry, World Bank Press Confab: Ghana’s economy rebounds!! …first quarter growth at 4.7% – Finance Minister appeared first on Ghanaian Times.
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