The International Monetary Fund’s (IMF) Managing Director, Kristalina Georgieva,has expressed optimism about Ghana’s economic development and said she expected the IMF to disburse a $600 million tranche of money in November.
Ghana is currently undergoing its first program review as part of a $3 billion IMF support package, with the review set to conclude in November.
Georgieva praised Ghana’s improved economic position over the past month, highlighting the country’s positive trajectory. She emphasized that this disbursement is essential for building confidence in Ghana’s economic stability.
“Ghana is doing actually quite well. You have seen that their position has improved over the last month, the economy is in a much better place,” she remarked in Ghana’s economic stability.
“I would very much hope that we can have the disbursement,” she said referring to a $600 million tranche of IMF money that’s due to be disbursed in November. That is part of the confidence building that we are projecting,” she added.
In her broader remarks, Georgieva identified addressing unsustainable debt crises as a top priority. She defended the G20 Common Framework for debt treatment, stating that it is becoming more efficient as more nations seek assistance.
She cited Chad, Zambia, Sri Lanka, and Ghana as examples of countries that have demonstrated shorter timeframes for progress in the debt treatment process.
“I hear lots of people saying, oh this doesn’t work. My question to them is, ok, you forget about it. What do you have instead?” she quizzed.
Georgieva acknowledged Egypt’s economic challenges and stressed the importance of devaluing its currency to prevent further depletion of reserves. She commended Egypt’s efforts to stabilize its economy and hinted at ongoing discussions between the IMF and Egypt regarding a road map for economic reforms.
Regarding Tunisia, Georgieva noted that while the situation is less dire than in some other countries, urgent action is still needed to complete arrangements for a $1.9 billion rescue package from the IMF. She emphasized the importance of strengthening Tunisia’s fiscal position and overall economic performance.
In a broader context, Georgieva expressed support for including clauses in debt agreements that allow for debt service suspension in the event of natural disasters. This approach promises to ensure that countries are not forced to choose between saving lives and paying creditors in the face of climate disasters.
