Can Ghana close official creditors debt deal next week?

Ghana's Finance Minister, Ken Ofori-Atta, has expressed confidence in the country's ability to reach a restructuring deal with its official creditors by the end of next week. One of the key issues on the negotiating table is the cut-off date and ensuring comparability of treatment between creditors. John Gatsi, Dean at the University of Cape Coast School of Business, discussed the impending deal and its implications for Ghana's economy. The Finance Minister's optimism stems from the willingness of external creditors to consider 20 to 40 percentage haircuts on their investments, indicating progress in the negotiations. Gatsi shared cautious optimism, hoping that a deal would be finalized to secure a $600 million tranche that would bolster Ghana's fiscal indicators. The looming question of the cut-off date remains a critical component of the negotiations, determining the terms of the deal and its impact on the country's economic recovery. While the Finance Minister's positive outlook is acknowledged, Gatsi emphasized the importance of timely financial support to implement policies effectively. Amid concerns about potential setbacks similar to Zambia's debt restructuring challenges, Gatsi highlighted Ghana's unique circumstances, expressing hope for fair treatment by creditors. In light of the upcoming elections and the need for economic stability, Ghana faces the task of navigating financial headwinds and fostering recovery. The delay in syndicated loans, coupled with domestic revenue mobilization challenges, poses risks to Ghana's economic outlook. Gatsi underscored the urgency of securing IMF funds to support policy implementation and mitigate economic risks. As Ghana strives to address its financial challenges and bolster investor confidence, effective management of resources and strategic economic planning will be crucial in steering the country towards sustainable growth and stability.