Ghana’s finance minister released a statement on April 13th, stating that Ghana will soon reach a deal with international bondholders of the International Monetary Fund (IMF) to restructure their $13 billion of debt. Finance Minister Mohammed Amin Adam has claimed that Negotiations are ongoing and is optimistic about positive results. The IMF has successfully reviewed the proposed loan program and has installed a $3 billion IMF program to help countries out of economic crisis. The agreement with Ghana would unlock a $360 million tranche if Ghana provides credible financing assurances which will be a start for Ghana getting out of its debt to ultimately decrease inflation and allow Ghana’s economy to flourish.
Looking at Ghana’s history of high debt costs and high inflation rates, it makes sense that Ghana looks to utilize the IMF program to help get out the billions of dollars in debt. The article is important because it shows that progress has been made in the negotiations between Ghana in the IMF and that financial leaders are hopeful that the deal will go through and Ghana will be able to receive the $360 million tranche. Receiving this money would allow Ghana to step out of its poverty and external debt which will allow for there to be a better functioning economy with only a suspected 15% of inflation levels which is much lower than previous levels.
Ghana’s proposed deal with the IMF ties to what’s being discussed in class because the International Monetary Fund is an example of an economic Intergovernmental Organization. Economic Intergovernmental organizations are international institutions created among states to help free trade, reduce tariffs, ensure economic development, and serve as an international banking service. The IMF was created to help ensure economic stability internationally, specifically targeting inflation in poorer countries to help restore their economies.