IMF Boost: Government Assured Of $360 Million Third Tranche Regardless Of Final Debt Agreement

• Ghana has received uplifting news from the African Department of the International Monetary Fund
• 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 recently finished a second review of Ghana’s programme

The African Department of the International Monetary Fund has indicated that Ghana will receive its next tranche from the fund, possibly without finalised debt restructuring from bilateral creditors.

Abebe Aemro Selassie, the director of the African Department, gave this update in a briefing to the media in the US.

This would mean a third tranche of $360 million could be released when the IMF Board meets in June 2024.

Selassie said the government of Ghana is in good faith discussions with the creditors and is hopeful of a positive outcome.

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"I should add here that the fact that they've not reached agreement with the Eurobond holders will not prevent, us from being able to provide more finance," Selassie said.

Ghana reached a staff-level agreement on its second review with the IMF mission team last Saturday.

The team noted that the country had made "strong progress" under the loan-support programme.

It said the next step was for the country to sign a Memorandum of Understanding (MoU) with its official creditors, consistent with the terms agreed in January 2024 and in line with the programme parameters.

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.

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

Previous struggles to meet IMF conditions

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.

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Source: YEN.com.gh