The International Monetary Fund (IMF) board will review Ghana’s $600 million second loan payout on Friday from the secured $3 billion loan in 2023.
This update comes after the country reached a deal to restructure $5.4 billion of its official creditor debt.
Kristalina Georgieva, IMF Managing Director said:
“Minister of Finance Ofori-Atta announced that Ghana has agreed with their official creditors. This agreement aligns with the goals of the IMF-supported program, which focuses on restoring stability, managing debt, and promoting inclusive growth.”
“This agreement clears the path for IMF Executive Board consideration of the first review of Ghana’s three-year Extended Credit Facility Arrangement in the next few days. I look forward to continuing our fruitful collaboration with Ghana.”
- The agreement between Ghana and its official creditors clears the path for the $600 million second tranche payment from the IMF to Ghana.
- The IMF had earlier said that Ghana securing timely agreements on its debt restructuring would be crucial to finalizing the deal.
- Ghana’s finance ministry revealed on Friday that once the second tranche is signed off, it will trigger $550 million in additional World Bank funding.
- Once the date for a meeting has been set, it is expected that the necessary approval will be granted.
- In May 2023, the IMF approved a $3 billion extended credit facility (ECF) arrangement it signed with Ghana and immediately disbursed $600 million as the first tranche.
- The arrangement was to assist with Ghana’s Post-COVID-19 Program for Economic Growth, which aims to restore macroeconomic stability and debt sustainability.
- The arrangement is expected to span over three years.