Ghana to get first $600m from IMF after Wednesday
The Minister of State at the Finance Ministry, Dr Mohammed Amin Adam Anta, has confirmed that the first tranche of $600 million will be disbursed immediately after the Executive Board of the International Monetary Fund (IMF) approves Ghana’s request for an extended credit facility (ECF).
Confirming to Reuters in a phone interview on Sunday, May 14, the Karaga Member of Parliament (MP) said a second tranche of the same amount will drop by end of year with the rest disbursed in equal tranches of $360 million after semi-annual reviews.
“We expect a deal on Wednesday,” the former Deputy Energy Minister is quoted as saying.
“With the disbursement, there is going to be $600 million as a first tranche just immediately after the approval.”
The first tranche is expected to be received by the country within a week after the Executive Board’s approval.
This development follows the massive support given to Ghana on Friday, May 12 by the Paris Club.
It was at its meeting co-chaired by China in Paris.
“The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the ‘Common Framework for Debt Treatments beyond the DSSI’ endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club,” the Paris Club said in a statement on Friday.
“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs.”
This brought joy to President Nana Addo Dankwa Akufo-Addo, who talked highly of the “last hurdle” crossed when he met the Ghana Catholic Bishops’ Conference at the Jubilee House.
“Today is a very special day in the recent history of Ghana. At long last today, we have been informed that the last hurdle towards our agreement with the [International Monetary] Fund has been overcome, which is that the Paris Club met today in Paris with the creditor’s committee co-chaired by China and has okayed and approved Ghana’s request of the IMF.”