Ghana to receive $600m IMF loan before the end of February 2024

The IMF Executive Board is able to release the second tranche of the $3 billion extended credit facility, which consists of $600 million, as the Official Creditor Committee appears to have given the Ghanaian government the go-ahead for the term agreement.

The story was confirmed by Finance Minister Ken Ofori-Atta in an interview with Bloomberg, who stated, “We are receiving the draft term sheet today, so I think we are about done.”

“We will look into the details, but then it’s good enough for the IMF to continue with their work, so we’re in good shape.”

Ghana only needs an agreement in principle before asking the IMF Board to approve the Staff Level Agreement (SLA) dated October 6, 2023, for the purposes of the first review under the $3 billion ECF program.

With the IMF Board’s approval, the second distribution of $600 million will be made possible in a matter of days.

The IMF for Africa’s Director, Abebe Selassie, affirmed Ghana had fulfilled its obligations and praised the nation’s remarkable progress in October.

“I have to tell you that whereas it took something like nine months or more for Zambia to get the official creditor committee to be created, in Ghana’s case, it was fairly rapid, adding that, “Ghana has done its fair share and it’s for the creditors to take steps” he stated.

However, discussions between Ghana and its official creditors were moving forward with “promising progress,” according to Leandro Medina, the IMF’s Resident Representative for Ghana.

‘’IMF Board approval is expected to further “trigger” World Bank Funding to the tune of $550 million. The Bank has pledged $300 million in budgetary support and another $250 million toward Ghana’s Financial Stability Fund.

“All of these funds are expected before the end of February 2024, with a strong and positive effect expected on Ghana’s reserve position and exchange rate stability” the statement added.

Source: Ghanatodayonline.com