Ken Ofori-Atta
In an effort to support Ghana’s balance of payments for 2023 and 2024, Finance Minister Ken Ofori-Atta has announced that the country is on track to receive the second tranche of the IMF bailout cash in December.
The Bank of Ghana’s June 2023 summary of the Economic and Financial Stability Report indicates that the bank’s balance of payments recorded a deficit of $107.8 million at the end of June, which is significantly lower than the deficit recorded during the same period in 2022.
Speaking at a breakfast meeting in Accra, Ofori-Atta expressed confidence in the government’s readiness to undergo its first review with the IMF in November as it awaits the second tranche of $600 million. He also mentioned the need to work with the World Bank to secure an additional $300 million through a Development Policy Operation (DPO).
Ofori-Atta believes that Ghana is on course to potentially receive a total of $1billion to address the Bank of Ghana’s balance of payment issues.
Ofori-Atta further expressed confidence in concluding talks with the Paris Club and its bilateral creditors by the end of the year. These talks are aimed at further addressing Ghana’s financial setbacks and ensuring the revival of its economy.
Ghana received the first tranche of its $3 billion bailout package from the IMF in May 2023.
The three-year extended credit facility is intended to revive the country’s ailing economy.
In August 2023, the IMF cautioned the Bank of Ghana, emphasizing the importance of upholding its policy mandates despite the financial setback experienced in the fiscal year ending 2022.
The IMF stressed the need for the central bank to take decisive measures to steer inflation back to its designated target of 8 percent.
However, the IMF backed the Bank of Ghana’s GHS60 billion loss, stating that it was necessary to restore macroeconomic stability and public sustainability.
Overall, Ghana is making progress in addressing its financial challenges and securing the funds needed to support its economy.
The government’s efforts in cooperation with international organizations like the IMF and the World Bank are expected to contribute to the improvement of Ghana’s financial stability and economic growth.
By Vincent Kubi