IMF Deal: Government Expecting $360 Million In June 2024 As Second Review Of Programme Begins

IMF Deal: Government Expecting $360 Million In June 2024 As Second Review Of Programme Begins

  • The government expects the third tranche of US$360 million from its programme with the International Monetary Fund in June 2024
  • An International Monetary Fund mission has commenced its second review of Ghana’s programme
  • Minister of Finance-designate Dr Mohammed Amin Adam said he was confident the country would scale through the assessment

The government expects a third tranche of $360 million in support from the International Monetary Fund to arrive in June 2024.

Minister of Finance-designate Dr Mohammed Amin Adam noted that the IMF commenced its second review of Ghana’s programme on April 2, 2024.

IMF cash for Ghana expected in June
Most recently, the IMF agreed to disburse a second $600 million to Ghana in January 19, 2024
Source: Getty Images

He said he was confident the government would have a smooth review.

The June payment will lead to a total disbursement of 1.56 billion under Ghana’s latest IMF programme.

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The remaining US$1.8 billion is expected to be disbursed in five tranches after each semi-annual review, with each review leading to the disbursement of US$360 million.

Dr Amin Adam said the second review would be the first of the two semi-annual reviews in 2024, with the third review scheduled for November.

Ghana's IMF journey

Ghana started restructuring its public debt in December 2022 to qualify for the $3 billion support from the IMF.

The country received $600 million when it agreed to the IMF programme in May 2023.

However, further disbursements have been contingent on restructuring the country's debt.

The IMF reached a staff-level agreement with Ghana on the first review of Ghana's economic program under the Extended Credit Facility arrangement in October 2023.

The IMF recently agreed to disburse a second $600 million to Ghana on January 19, 2024.

Previous struggles to meet IMF conditions

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YEN.com.gh reported that Ghana missed the November 1, 2023, timeline set in the IMF programme to get the second tranche of the $3 billion bailout package.

Ghana had submitted proposals to commercial creditors seeking a haircut of up to 40 percent.

Bright Simons of IMANI Ghana raised concerns that the government struggled to convince the IMF to sign off on the $600 million at the time.

His comments followed the response by Ernest Addison, the Bank of Ghana governor, who described MPs who took part in the OccupyBoG protests as hooligans.

Source: YEN.com.gh

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