Ofori-Atta Optimistic Ghana Will Receive Second Tranche of IMF Cash

The Minister of Finance Ken Ofori-Atta has expressed optimism that Ghana would receive the second tranche of the $ 3 billion deal with the International Monetary Fund (IMF). 

Speaking to Journalists at the Ghana Trade Fair Redevelopment Project Investor Conference in Accra, Mr. Ofori-Atta said the government expects to be successful with the review of the performance since the first tranche was released in May this year.

He said “We had an IMF Staff visit about three weeks ago which went very well and we’re expecting that review in September [2023]”.

“Between cabinet and parliament, so far we’ve gone through the qualitative performance criteria. So we expect that the review will go well in September [2023] to get a Staff-Level Agreement. We’ll go to the Board in November [2023] and we’re sure we can get it”, he explained.

“God always  pull the country through and with the help of all, speaking the same language, managing our investors and bondholders well, we will get there”.

The first tranche of $600million was received by the Bank of Ghana (BoG) on Friday, May 19.

The cash, according to the Ministry, is to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth.

“The first tranche of $600million of Ghana’s low interest of $3billion Extended Credit Facility has been received to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth,” the Ministry tweeted on Saturday, May 20.

Finance Minister Ken Ofori-Atta earlier stated that the second tranche was expected to be received in the next 6 months.

Speaking at the IMF-Ghana joint press conference held in Washington   on Thursday, May 18, he said “There is a 600million Dollars release, I am sure we can get it by tomorrow, and in the next 6 months it is going to be another 600million dollars and then we have about five different tranches in the periods forward to get to the $3billion.”

The IMF Mission Chief for Ghana Stéphane Roudet indicated that the $3 billion bailout would result in reforms in the energy and cocoa sectors.

Also, he said the programme would result in reforms to encourage private sector investments and also build international reserves.

“There will be reforms in the energy and cocoa sectors,” he said during a joint Ghana -IMF press conference.

“It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future,” he added.

The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May 12.