The IMF Executive Board approved, on May 17th, an SDR 2.242 billion (about US$3 billion) 36-month Extended Credit Facility (ECF) arrangement for Ghana.
This decision enabled an immediate disbursement equivalent to SDR 451.4 million (about US$600 million).
The rest is expected to be disbursed in tranches every six months, following program reviews approved by the IMF Executive Board.
A press briefing scheduled to take place on Thursday, May 18, will provide the opportunity for IMF Chief for Ghana, Stephane Roudet and Finance Minister Ken Ofori-Ataa to share further details of the deal.
The press briefing will also feature key participants such as Dr Ernest Addison, Governor of the Bank of Ghana; and Tatiana Mossot, Senior Communications Officer at the IMF.
This development comes after Ghana received necessary debt assurances from the Paris Club and China to support its request for balance of payment assistance from the IMF.
The creditor committee, co-chaired by France and China, examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and endorsed its request for a debt treatment under the “Common Framework for Debt Treatments beyond the DSSI” endorsed by the Paris Club.
In a statement, the creditor committee encouraged multilateral development banks to maximize their support for Ghana to meet its long-term financial needs.
Kristalina Georgieva, Managing Director of the IMF welcomed the creditor’s assurances. She said, “This statement provides the necessary financing assurances for the IMF Executive Board to consider the proposed Fund-supported program and unlock much-needed financing from Ghana’s development partners.”
Ghana reached out to the IMF in July 2022 after several months of opposing a return to the Fund. Ghana seeks to restore its economy and to do that, needs assistance from the IMF.
Though government officials says the IMF bailout is not the panacea to the economy’s crisis, it however does form part of the measures to resolve the economic turmoil the West African country finds herself.
Source: The Independent Ghana