The International Monetary Fund (IMF) has approved Ghana’s $3 billion bailout programme aimed at propping up the Ghanaian economy.
IMF’s Executive Board granted the approval at its meeting held on Wednesday, Reuters reported yesterday.
According to the IMF, disbursement of the three-year extended credit for Ghana would be done in batches with the disbursement of $600 million in the first tranche.
“The rest will be disbursed in tranches every six months following programme reviews, the IMF said in a post on its website yesterday, reported by Reuters.
The Paris Club last week agreed to establish the Official Creditor Committee (OCC) under the G20 Common Framework for Debt Treatments, to seek financing assurances from bilateral creditors.
“The Paris Club has today established the OCC, co-chaired by China and France. With the granting of Financing Assurances, Ghana is now ready to go to the IMF Board,” Finance Minister Ken Ofori-Atta last week announced on his Twitter Page.
A joint statement issued the government and the IMF said “the creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the “Common Framework for Debt Treatments beyond the DSSI” endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club,” the statement said.
It said the creditor committee supported Ghana’s envisaged IMF upper credit tranche (UCT) programme and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs.
The Managing Director of the International Monetary Fund (IMF), Ms Kristalina Georgieva, in a statement yesterday in reaction to the statement from the OCC posted on the IMF website, said “I welcome the statement from the Official Creditor Committee for Ghana on the importance of an IMF-supported economic program, together with its commitment to negotiate debt restructuring terms accordingly.”
“The Creditor Committee’s action recognises the Ghanaian authorities’ strong reform programme, which aims to restore macroeconomic stability and debt sustainability while laying the foundation for an inclusive recovery,” Ms Georgieva, stated.
Ghana signed on an IMF programme in 2022 for a balance of payment support to support the economy and meet its financing needs and well as bring the country on the path of debt sustainability.
Consequently on December 12, 2022, the IMF reached a staff level agreement with the Ghanaian authorities on the programme.
Meanwhile the IMF yesterday said it would hold a virtual press conference today to provide journalists with insights into the outcomes of the Executive Board meeting concerning Ghana’s request for an Extended Credit Facility (ECF) Arrangement.
Speakers at the press briefing will include Stephane Roudet, the IMF Mission Chief for Ghana; Ken Ofori-Atta, Ghana’s Minister of Finance; Ernest Addison, Governor of the Bank of Ghana; and Tatiana Mossot, Senior Communications Officer at the IMF.
Ghana’s Minister of Finance, Ken Ofori-Atta, and Governor Ernest Addison will likely share insights into the country’s economic challenges, reform efforts, and the potential impact of the Extended Credit Facility Arrangement on Ghana’s financial stability and economic growth prospects.
Mr Roudet will provide an expert analysis of the country’s economic performance, outlining the conditions and policy measures associated with the Extended Credit Facility Arrangement.
BY KINGSLEY ASARE
