Ghana's IMF deal equal to 'making a deal with the devil' – Prof. Hanke

An Economics professor at the Johns Hopkins University-USA, Steve Hanke, has reiterated his “disgust” for Ghana’s bailout deal with the International Monetary Fund.

He says it is synonymous with making a deal with the devil.

He wrote on X: “#SaveGhanaNow: Today, Ghana’s official creditors met to discuss the restructuring of $5.4bn in loans in order to secure EVEN MORE loans from the IMF. AKUFO-ADDO + IMF LOANS = MAKING A DEAL WITH THE DEVIL.”

On January 11, 2024, Ghana received a draft term sheet on debt relief from its official creditors that is sufficient for the International Monetary Fund to disburse $600 million.

The term sheet from the Paris Club Group of creditors and new ones including China comes after months of negotiations to restructure as much as $5.4 billion of bilateral debt. The IMF board is expected to meet in a week.

“We are reviewing the draft term sheet. We need to scrutinize every clause but in terms of the broad framework, all parties are in agreement so it’s kind of a clearance to the fund. I’m hoping by tomorrow we will have finished so that whatever needs to be done will be sent to the fund,” the Minister of Finance, Ken Ofori-Atta said.

Ghana started restructuring most of its public debt in December 2022 to qualify for a $3 billion extended credit facility program with the IMF.

The country received the first tranche of $600 million when it agreed to the bailout program in May.

SSD/MA

#SaveGhanaNow: Today, Ghana’s official creditors met to discuss the restructuring of $5.4bn in loans in order to secure EVEN MORE loans from the IMF.

AKUFO-ADDO + IMF LOANS

= MAKING A DEAL WITH THE DEVIL. pic.twitter.com/Xf6NaFO1kx

— Steve Hanke (@steve_hanke) January 11, 2024