Economist, Dr. Lord Mensah, is hopeful the International Monetary Fund’s (IMF) appeal to developing countries’ creditors to reduce interest payment on loans will help ease up the burden on Ghana’s external debt component if the creditors respond positively to it.
In the wake of the COVID-19 pandemic, the IMF has urged creditors to consider the interest rates on loans advanced to developing countries by slashing it.
Already, Ghana has raised a number of loans from the international market including a 3 billion-dollar Eurobond this year putting Ghana’s public debt situation in a very desperate position, an International Monetary Fund’s Resident Representative, Dr. Albert Touna-Mama stated earlier this year.
Commending the IMF for its directive, Dr. Lord Mensah further urged Ghana’s Finance Minister to begin talks with Ghana’s creditors to benefit from the intervention as the country battles the COVID-19 pandemic.
“Looking at the remedies, we have started responding to that. I read something on IMF and then the world bank website today indicating that all those developing countries that rely on the European market, the market should find a way to suspend payment of interest at least for the next couple of years so that they can use these funds to rebuild those economies; so that is for developing countries that have been hit recently by this COVID-19,” he said in an interview with Citi Business News.
IMF acknowledges receipt of Ghana’s request for credit facility
Last month, the International Monetary Fund, IMF, confirmed receipt of Ghana’s request to the Fund seeking financial assistance to help the country address the economic impact of the COVID-19 pandemic.
A release on the IMF website, quoted the Director of the African Department at the IMF, Abebe Selassie, as indicating that the Fund is working hard to assess the request by Ghana and bring it for the Executive Board to consider as soon as possible.
“Last week, the IMF received Ghana’s request for a disbursement under the Rapid Credit Facility to help the country address the economic impact of the COVID-19 pandemic. We are working hard to evaluate the authorities’ request and bring it forward for Executive Board consideration as soon as possible,” the statement added.