The Central Bank of Nigeria Clarify Operational Issues With The Unified FX Regime

Ghana: Finance Minister Ofori-Atta yesterday provided an economic update, noting that authorities expect to complete debt restructuring before the next IMF review of the USD3bn facility, which is expected in September. He added that the government aims to reach an agreement with bilateral creditors in the coming weeks as it seeks to complete the Memorandum of Understanding with creditors.

Ofori-Atta stated that the government has ‘successfully worked with the Paris Club and other creditors to determine the parameters for official debt restructuring under the G20 Common Framework for debt treatment’. Ghana’s debt to bilateral creditors, including China and Paris Club members, amounts to USD5.4bn, of the USD20bn external debt due for restructuring. He noted further that the government will continue discussions with private creditors, including Eurobond investors, on external debt to reach an agreement within the shortest possible time.

The minister stated that the government will approve before the end of June an energy sector reform plan that will enable to tackle debt owed to independent power producers, which stood at USD2bn as of May 2023 (Reuters).  

The minister’s comments come after the IMF completed its visit to the country on 15 June, during which it noted that the economy ‘is showing signs of stabilisation, with softening inflation, an increase in international reserves and a less volatile exchange rate’. The Fund reiterated ‘timely restructuring agreements with creditors’ which are ‘essential to secure the expected benefits of the Fund-supported program’.