Ghana’s Finance Minister, Ken Ofori-Atta is in Washington, DC, to attend the 2022 IMF and World Bank Annual meetings and advance negotiations with the IMF on a Programme that addresses Ghana's macroeconomic and structural challenges.
As part of the Annual Meetings Programme, the Finance Minister, on October
11th, 2022, attended the 108th Meeting of Ministers and Governors of the Group
of 24 on the theme "Securing a Sustained Post-Pandemic Recovery".
The meeting provided a platform to discuss critical areas where the
international community and international financial institutions such as the
IMF and the World Bank Group could scale up their support for emerging
economies.
This forum comes against the backdrop of a confluence of external shocks - in
particular, the covid pandemic, the continuing consequences of the
Russia-Ukraine war and deepening concern about the imminent impact of climate
change.
“There is the need to put a spotlight on the economic consequences of climate
change, particularly as it relates to developing countries who are the least
contributors to climate change,” Mr. Ofori-Atta told the G-24 Ministers and
Governors meeting.
Climate change has wiped out a fifth of the wealth of climate vulnerable
countries over the last two decades alone, meaning that vulnerable countries
have lost approximately US$525 billion because of global warming induced by
human - or anthropogenic - activity, as opposed to the natural climate cycle.
“This has horrific effects on lives and livelihoods. The time to act is now.”
Mr. Ofori-Atta said.
The Finance Minister subsequently met with the Director for the Africa
Department of the IMF, Abebe Aemro Selassie, to press on with negotiations with
the IMF.
Formal negotiations will continue after the Annual Meetings, between the
Government of Ghana team, led by Mr. Ofori-Atta; and the IMF team, led by the
IMF Mission Chief, Stéphane Roudet.
The negotiations will prioritize the implementation of policies that create the
conditions for a stable macroeconomic environment, sustainable growth and debt
sustainability.
Mr. Ofori-Atta told the G-24 to champion the rollout of more debt for climate
swaps in order to address the dual crisis of climate change and rising debt in
order to build economic resilience amongst climate vulnerable countries.”
Debt for Climate (DFC) swaps enable countries to make external debt payments in
local currency instead of a foreign one, to finance climate projects
domestically on agreed terms. DFC swaps can reduce the level of indebtedness as
well as free up fiscal resources to be spent on green investments.
Source:
Peacefmonline.com/Ghana