Ghana’s Finance Minister to Sign Memorandum of Understanding with Bilateral Creditors Next Week

Ghana is on the brink of signing a crucial Memorandum of Understanding (MoU) with its official bilateral creditors next week, as revealed by Dr Mohammed Amin Adam, the Minister of Finance. This development comes as the country awaits the disbursement of its third tranche of US$360 million from the International Monetary Fund (IMF).

The signing of the MoU is a key step in the government’s efforts to restructure its external debt of US$13 billion under the Extended Credit Facility (ECF) program. It is also essential for stabilizing the country’s currency, the Cedi, against major trading currencies, particularly the Dollar.

Dr Ernest Addison, Governor of the Bank of Ghana, expressed confidence that the US$360 million disbursement would bolster the country’s foreign currency reserves, which are crucial for maintaining currency stability and providing liquidity during economic crises.

Economist Professor Godfred Alufar Bokpin emphasized the importance of the MoU in stabilizing the Cedi, which has been facing depreciation in recent times. He noted that the approval of the US$360 million by the IMF Board would instill confidence in the economy and lead to relative stability.

In a related development, Deputy Finance Minister Dr Stephen Amoah urged Ghanaians to support domestic tourism and hospitality centers to keep money within the country and mitigate the depreciation of the Cedi. He emphasized the importance of high patronage of domestic tourism in boosting the economy and preserving the value of the local currency.

Overall, the signing of the MoU and the subsequent disbursement of funds are expected to have a positive impact on Ghana’s economy and currency stability, providing a much-needed boost to the country’s financial outlook.