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The International Monetary Fund
Ghana to commence formal talks with IMF for economic bailout
Ghana’s bonds trading at distress levels in more than six weeks
Investors signal optimism in government’s decision to engage IMF
Ghana’s dollar bonds recorded some extended gains for a second day due to increasing investor optimism in government’s decision to seek an economic programme from the International Monetary Fund.
According to a Bloomberg report, Ghana’s Eurobonds which are expected to mature in 2027, increased by 1 percent to 62.82 cents in the dollar as at 2:52pm on July 4, 2022.
This development makes it the highest gains recorded in more than six weeks as Ghana’s bonds have been trading at rather distress levels.
Prior to this, yields for the bonds were above 20 percent before President Nana Addo Dankwa Akufo-Addo authorized the Finance Minister [Ken Ofori-Atta] to commence formal engagements with the IMF for an economic programme.
Meanwhile, the Government of Ghana is targeting about US$3 billion from the International Monetary Fund under an economic support programme.
This was contained in a document released by the Ministry of Finance spelling out some details of government’s engagement with officials from the Bretton Woods institution on July 6.
The ministry explained that it seeks to secure the fund under a recently introduced innovative blended programme from the IMF dubbed; High Combined Credit Exposure (HCCE) policy.
Officials from the IMF arrived in Ghana on Tuesday July 5 to commence negotiations from July 6 with the Government of Ghana on the modalities for a package to support Ghana’s economy.
MA/FNOQ
