The Minister of Information, Kojo Oppong Nkrumah, has clarified that the fundamental issues plaguing Ghana’s economy are not expected to be resolved solely through the current arrangement with the International Monetary Fund (IMF).
Earlier this year, the IMF board approved Ghana’s request for a $3 billion bailout, with an initial disbursement of $600 million to the Bank of Ghana.
Subsequent disbursements were contingent on Ghana meeting specific conditions set by the IMF, which included improvements in domestic revenue mobilization.
However, Ghana missed the November 1 deadline set by the IMF for the second tranche of the $3 billion bailout due to ongoing debt rework negotiations with external creditors.
During an interview on JoyNews’ “The Probe,” Minister Kojo Oppong Nkrumah insisted that no official deadline had been missed.
“The first review has been concluded and Ghana was successful in that review. I think at the end of that review, there was a joint conference between Ghana’s Finance Minister and the Head of the IMF team, and a staff level agreement was signed and announced to undergird our parts of the first review. And then it was mentioned that the staff level agreement would have to go to the IMF Executive board which board meets in the 3rd week of November to give its approval, and when that approval is given, then the second tranche would be disbursed.”
He explained that the first review was successfully concluded, leading to a staff-level agreement between Ghana’s Finance Minister and the IMF team.
This agreement needs approval from the IMF Executive Board, which typically meets in the third week of November. Only after this approval is granted can the second tranche be disbursed.
The Minister emphasized that the IMF transaction was not a comprehensive solution to Ghana’s economic challenges but rather a means to support the Post Crisis Programme for Economic Growth (PC-PEG) aimed at recovering from economic difficulties.
He also highlighted that various countries worldwide were implementing measures to address economic challenges caused by global economic issues.
Ghana is currently engaged in negotiations with its external creditors for debt relief amounting to $10.5 billion. The country has submitted proposals for debt restructuring, including potential haircuts, to its commercial and bilateral creditors.
The IMF’s program requires Ghana to secure financial assurance from external creditors before accessing the second $600 million tranche, and it is anticipated to release a total of $1.2 billion under the Fund’s program.
Ghana’s debt arrangement with foreign creditors is expected to free up around $2.5 billion in 2023, helping address the country’s Balance of Payment deficit.