Finance expert cautions against rushing external debt treatment process

Professor Lord Mensah, a finance expert and senior lecturer at the University of Ghana Business School, has advised the government and Ghanaians to be patient and appreciate the complex dynamics involved in the external debt treatment process.

According to Prof Mensah, the agreement reached with the Official Creditor Committee was just the beginning of the process, and it did not automatically mean that all creditors will accept the terms.

He explained that the OCC represents a committee of creditors, and they need to go back to their constituents to relay the agreed-upon terms before they can be tentatively put on paper.

Prof Mensah emphasized that the process is complex and requires time, and therefore, Ghanaians should not stampede the process.

He noted that the timing of the signing of the MOU is crucial, as it needs to coincide with the upcoming IMF board meeting, to provide evidence of the agreement and facilitate approval.

It will be recalled that the Ministry of Finance in a press statement issued on Wednesday, announcing the Memorandum of Understanding agreed with the Official Creditor Committee had called on the creditors to expedite their internal processes towards the signing of bilateral agreements.

The speed with which the ministry wants the agreement signed emanates from having to meet the demands of the IMF prior to receiving the third tranche of money ($360million).