President of policy think tank, IMANI Ghana, Franklin Cudjoe

IMANI-Africa says government is faced with daunting choices in its imminent sovereign debt restructuring.

The policy think tank believes leadership would be crucial in building confidence on this path.

“Like all burdens, this one too will become lighter if it is shared collectively by those it affects, the people of Ghana. No time is better than now for the government to show its mettle in dispelling mounting scepticism and cynicism about its commitment and capability to get the debt crisis response right.

“Failure will have consequences too dire to contemplate,” IMANI said in its preliminary findings from an analysis of a potential sovereign debt restructuring in Ghana.

Finance Minister Ken Ofori-Atta has indicated government is poised to tie down an IMF-supported arrangement before November ahead of the 2023 budget.

Mr Ofori Atta told reporters in the capital, Accra, on Wednesday that the 2023 budget will be presented in November, leaving the government with less than two months to wrap up an agreement with the Washington-based lender.

“We simply have not reached any agreement with the Fund on the parameters of any debt operations as we are in the process of completing the debt-sustainability analysis,” he noted.

Ghana will start to engage with local and foreign investors to help fast-track negotiations with the IMF for as much as $3 billion to support its economic program.

The government will announce the names of five members of a committee put together to lead talks for national consensus building in the coming days, the minister said.

Meanwhile, government is racing against time as key aspects of the IMF program are billed to reflect in next year’s budget.