On Thursday, Mohammed Amin Adam, Ghana's newly appointed finance minister, made a commitment to maintain the country's $3 billion International Monetary Fund (IMF) program on schedule. The goal is to complete the restructuring of Ghana's overseas debt before the scheduled December election.
Amid criticism of Ken Ofori-Atta's leadership during Ghana's severe economic crisis, President Nana Akufo-Addo replaced him with Adam, a petroleum economist who previously served as a state minister at the finance ministry.
Ofori-Atta played a crucial role in negotiating the IMF bailout loan to address the economic crisis, characterized by escalating inflation and debt servicing costs in 2022. Ofori-Atta and Adam were jointly seeking relief on approximately $13 billion owed to private bondholders when Ofori-Atta was removed from his position.
Adam reassured that there would be no delays in the ongoing debt negotiations with bondholders, underscoring his involvement in the process. He emphasized that the advisors and targets remain consistent, as he has been engaged in the discussions since the beginning.
As the national elections approach in December, some analysts express concerns that the new finance minister may relax fiscal consolidation measures to bolster the electoral prospects of the ruling party. However, Adam firmly stated that there would be no reversal on the IMF program of fiscal consolidation. He emphasized that revenue mobilization would be aggressively pursued through new reforms at the Ghana Revenue Authority, and that spending would be efficient and directly benefit the citizens.
Adam affirmed his support for the structural benchmarks outlined in the IMF program, stating, "I am a pro-reform person." The IMF has expressed its endorsement of the new minister.
Last month, the World Bank's board approved $300 million for Ghana after the country reached an agreement to restructure $5.4 billion of loans with its official creditors. Ghana is entitled to a three-part, $900 million Development Policy Operation loan from the World Bank, and Adam announced that negotiations for the next disbursement were about to commence during an earlier interview with a local radio station.