Following a staff-level agreement on the third review of the nation’s $3 billion extended credit facility, Ghana is scheduled to receive the $460 million fourth tranche of the International Monetary Fund’s (IMF) loan program.
The nation’s economy, which has been exhibiting indications of growth and stabilization, will benefit greatly from this development.
Stéphane Roudet, the mission staff member of the IMF in Ghana, informed the media last Friday that the agreement at the staff level was reached after the mission staff members had evaluated the country’s fiscal statistics for two weeks.
He claims that an extensive assessment of Ghana’s performance was carried out by the IMF team, who assessed advancement in comparison to pre-established goals and structural benchmarks as of June 30, 2024.
The $3 billion extended credit facility’s fourth tranche was made available with the help of this evaluation; however, the IMF Board’s approval is still pending.
Should this tranche be accepted, Ghana will have received US$ 1.96 billion in payments overall.
Restoring macroeconomic stability and lowering the nation’s debt vulnerabilities are the goals of the IMF’s assistance.
Ghana’s main fiscal balance improved by more than 4% of GDP last year, demonstrating the country’s significant success in improving its fiscal condition.
The government is dedicated to pursuing budgetary consolidation even further, according to the Finance Ministry.
Meanwhile, the completion of the nation’s Eurobond debt exchange has been declared by Dr. Mohammed Amin Adam, Minister of Finance.
of the upcoming weeks, US$13 billion of Eurobonds will be exchanged for new bonds as part of the exchange, which was completed in less than nine months, he said.
Speaking to the media in Accra on Thursday, Dr. Adam said that the government has gotten more than 98% of bondholders’ consent—much more than the 65% required after the Exchange Offer and Consent Solicitation were introduced in September 2024.
“This impressive result surpasses international benchmarks and demonstrates the strong support of Ghana’s bondholder community across Africa and in the international markets,” he said.
He went on to say that the development ends Ghana’s international bond default and opens the door to more regularized financial ties with rating agencies and global markets.
He stated “In essence, Ghana has now restructured over 90% of its eligible external debt, marking a significant milestone in its economic recovery, this swift action showcases the government’s unwavering commitment to restoring financial and debt sustainability.”
Source: newsthemegh.com