Source: newsthemegh.com
It is anticipated that the Bank of Ghana (BoG) will receive the $360 million third tranche under the $3 billion Extended Credit Facility (ECF) today.
The second assessment of Ghana’s $3 billion loan package has been authorized by the IMF Executive Board, allowing for the immediate payout of about $360 million.
This choice was made after Ghana successfully negotiated with its official creditor committee, which was a prerequisite for releasing the loan’s second tranche.
With this most recent payment, Ghana has now received $1.56 billion in IMF funding during the course of the three-year bailout program.
The goal of the program is to help Ghana get out of its worst economic crisis in a long time.
Regarding Ghana’s advancement under the Fund program, IMF Deputy Managing Director Kenji Okamura said in a statement on Friday, June 28 that “the government’s strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is paying off, with clear signs of stabilization emerging.”
Ghana suffered serious economic difficulties in 2022, which included a declining cedi, skyrocketing inflation, and high debt-service expenses made worse by the COVID-19 pandemic, Russia’s invasion of Ukraine, and high global interest rates. As a result, Ghana needed assistance from the IMF.
Notwithstanding these obstacles, Ghana’s economy appears to be improving. The economy grew by 2.9% in 2023 and by 4.7% in the first quarter of 2024.
Despite the cedi’s continued depreciation, inflation has drastically dropped from a peak of over 54% in December 2022 to 23.1% recently.
In the meantime, the Finance Ministry, the Bank of Ghana, and the IMF are scheduled to jointly convene a press briefing this afternoon to address and respond to inquiries from media regarding the nation’s progress under the Fund program thus far, with the anticipation that the third review of Ghana’s program would begin.