IMF bailout: Delay in second tranche due to disagreement from external creditors – John Gatsi

The Dean of the University of Cape Coast Business School, Prof John Gatsi, has explained that the delay in the release of the second tranche of the International Monetary Fund is because of the delayed assurances from the country’s external creditors.

According to him, the external creditors are unwilling to accept the 30%-40% haircut being proposed by the government.

Even though, the government has refuted claims that it had missed a November 1 deadline, acceptance of the proposed haircut from external creditors are yet to come.

“The delay is occasioned by the inability of the government of Ghana and the creditors to agree on what is required of them. The Government of Ghana is pleading with the creditors to accept the certain elongation of maturity of the debts and some cuts, about 30 to 40 percent on the interest or the coupons that they expect.

“That is where the disagreement is coming from. As things are it seems part of the creditors such as bilateral and multilateral are sort of very soft but it was also indicated that some creditors are excused from the debt exchange programs, they will not be affected,” John Gatsi was quoted by 3news.com.

However, the economist said creditors are currently in a fix as it has become difficult to let go of their interests.

“It is very difficult for commercial creditors to see a chunk of the interest wiped away, I believe that is where the disagreement is and they have not come to terms with it yet. That is why we couldn't meet the target,” he insisted.

SSD/OGB

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