IMF Deal: Ghana About To Get Approval For $360m Third Tranche

IMF Deal: Ghana About To Get Approval For $360m Third Tranche

  • Ghana is set to secure board approval from the International Monetary Fund (IMF) for the third tranche of $360 million
  • Ghana is expected to get approval for its third tranche when the Executive Board meets in June
  • The IMF most recently agreed to disburse a second $600 million to Ghana on January 19, 2024

Ghana is on track to secure board approval from the third tranche of $360 million out of its $3 billion IMF support.

The government's support programme is said to be showing better-than-expected results.

Ghana has received $1.2 billion in IMF funding so far and is nearing the approval process for the next disbursement.

Ghana IMF deal progress
In October 2023, the IMF reached a staff-level agreement with Ghana
Source: Getty Images

Julie Kozack, the IMF's Director of Communications, said Ghana is gaining more confidence and support from the IMF.

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Ghana is expected to get approval for its third tranche of $360m when the IMF Executive Board meets in June.

The government is not expected to implement additional adjustments by the IMF.

The government has expressed optimism that ongoing discussions among official creditors will facilitate the conclusion of talks, enabling the release of the third tranche of funds.

“Growth, for example, in 2023, was higher than anticipated, and the growth projections are being revised upward," Kozack said.

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.

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

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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 approve the $600 million at the time.

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

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

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Source: YEN.com.gh

Authors:
Delali Adogla-Bessa avatar

Delali Adogla-Bessa (Current Affairs Editor) Delali Adogla-Bessa is a Current Affairs Editor with YEN.com.gh. Delali previously worked as a freelance journalist in Ghana and has over seven years of experience in media, primarily with Citi FM, Equal Times, Ubuntu Times. Delali also volunteers with the Ghana Institute of Language Literacy and Bible Translation, where he documents efforts to preserve local languages. He graduated from the University of Ghana in 2014 with a BA in Information Studies. Email: delali.adogla-bessa@yen.com.gh.

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