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Ghana’s IMF package is in uncertainty – Daniel Krull

Ghana’s talks with the International Monetary Fund (IMF) for a bailout are in danger, says Daniel Krull, Germans ambassador to Ghana.

International Monetary Fund

According to him, China’s unwillingness to engage Ghana in possible debt relief is a threat.

“The biggest elephant in the room is China. China is the largest creditor to Ghana and so far, it’s not fully supporting the setting up of the creditor’s committee where all the creditors will sit down and agree on a package for Ghana,”

“Time is of the essence, time is running out. Without this agreement with the bilateral creditors, the IMF package is in severe danger,” he added.

Daniel Krull, also shared his concerns about the huge size of Ghana’s government.

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Speaking at a press conference, Mr. Krull questioned why Ghana continues to have a size of government that is far bigger than Germany’s.

According to him, Ghana cannot go out to the international community crying for help and still refuse to cut its expenditure.

“Well, of course, it depends very much on what kind of expenditures you’re looking at … I’m convinced this is true for if I look at the budget of the German Foreign Ministry of the German government, I’m convinced there are important tasks that can be cut without hurting the economic development.

Germany is ready to come to the table and assist Ghana, however, the government should strongly cut down the size of its representative members.

Ghana is hoping to restructure $1.7 owed to China as Ghana hopes to complete the restructuring of its external debt as part of the conditions required to secure an IMF program.

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