IMF To Grant Ghana's Request For $3 Billion Loan After Securing Assurance Under G20 Common Framework
- Ghana is on track to receive $600 million this week, representing the first part of the total $3 billion loan from the IMF
- This milestone was achieved after Ghana secured the assurance under G20 Common Framework
- The G20 Common Framework deals with the implementation of an IMF-supported reform programme for low-income countries, among other things
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Ghana has received the strongest signal yet about when the first part of the crucial $3 billion loan from the International Monetary Fund (IMF) will hit state accounts after months of anticipation and missed timelines.
Reports monitored by YEN.com.gh indicate that the first of the three-part disbursement will land by Friday, May 19, 2023 - two days after the IMF Board approves the transaction.
According to one such report by Joy News, there would be two disbursements this year:
"The first one coming in by Friday May 19, 2023 or Monday, May 22, 2023. Another disbursement is expected to be done in June 2023."
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Ghana secure assurance under G20 Common Framework
Ghana reached the milestone in its quest to access the critical loan from the IMF to correct balance of payment challenges after securing assurance under the G20 Common Framework.
The G20 Common Framework deals with insolvency and protracted liquidity problems, along with the implementation of an IMF-supported reform programme for low-income countries.
G20 official creditors include the “Paris Club” creditors, such as France and the United States, and new creditors, such as China and India.
Ghana secured the financing assurance on May 12, 2023, from the "Paris Club" of bilateral creditors.
For Ghana's IMF programme, the Club will form a creditor committee to be co-chaired by China and France. China owns one-third of Ghana's external debts.
Ghana to receive $600 million as the first part of the disbursement
According to people with deep insights into Ghana's request for the IMF loan, some $600 million will be released as the first disbursement.
Meanwhile, after the first disbursement, there will be a visit by an IMF Mission to Ghana in June 2023 to review Ghana’s programme considerations before the second disbursement later that same month (June).
However, there will be another review before the end of 2023, possibly in December 2023, before the final disbursement.
All the $3 billion IMF disbursements will be paid directly into the Bank of Ghana’s account to support Ghana’s balance of payments needs.
IMF directed Ghana to get financing assurances from partners
YEN.com.gh reported in a previous story that Ghana was ordered by the IMF to first secure financing approval from its partners and creditors as quickly as possible to facilitate the Board's approval of the $3 billion loan request.
Director of communication at IMF Julie Kozack made the comments when she responded to a question about the status of Ghana's IMF programme during a programme in Washington DC.
Her comments at the time follow strong assurances by Nana Akufo-Addo that the loan will be secured by the end of March 2023.
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