Akufo-Addo Administration Meets Requirements For Release Of More Bailout Cash From IMF

Akufo-Addo Administration Meets Requirements For Release Of More Bailout Cash From IMF

  • The government has met all benchmarks for the release of the second tranche of the $3 billion IMF support
  • Meeting these benchmarks will trigger the release of a second tranche of another $600 million
  • The second part of the IMF support is expected to hit the Bank of Ghana's accounts in November

The Akufo-Addo administration has met the conditionalities for structural reforms to allow the disbursement of the second tranche of the $3 billion International Monetary Fund support.

The Daily Graphic reported that this will allow the release of $600 million in November 2023.

Akufo-Addo makes progress with IMF requirments
The Akufo-Addo Administration is now primed to receive more monetary support from the IMF. Source: Facebook/@NanaAddoDankwaAkufo-Addo
Source: Getty Images

This will raise the money Ghana has received under the three-year extended credit facility to $1.2 billion.

The conditionalities include preparing a strategy to strengthen the financial sector and rebuild financial institutions, developing a comprehensive tracking of arrears accumulated by all ministries, departments and agencies, and publishing an updated energy sector recovery strategy.

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This development was disclosed on Wednesday during a briefing session with sections of the media and other stakeholders on the Mid-Year Budget Review.

A director at the finance ministry noted the strides the government has made and said the government had been collaborating with the IMF staff.

The Bank of Ghana received the first tranche of $600 million on May 17, 2023.

Health of the economy after IMF deal

YEN.com.gh reported that the finance minister, Ken Ofori-Atta, said the economy had taken a turn for the better.

During the 2023 Mid-Year Budget Review to Parliament, Ofori-Atta said the government had turned a corner, with respect to the economic crisis.

"Our plans and programmes should soon lead to a sustained increase in domestic production, including manufacturing and farming, replacing many of the products that we are used to importing," the minister said.

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Minority blasts finance minister

At the same budget review, YEN.com.gh reported that the Minority in Parliament disagreed with the finance minister.

Speaking after the budget reading, Minority Leader Cassiel Ato Forson said the government had rather worsened the situation.

“Unfortunately, the evidence and the numbers before us show that he has rather deepened our woes,” Forson said.

In line with the Minority's assertion, YEN.com.gh also reported that Ghana's inflation rate rose for the second successive month in June.

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Source: YEN.com.gh

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