Dr. Mohammed Amin Adam
Ghana is set to receive the fourth tranche of the International Monetary Fund’s (IMF) loan programme, worth $360 million, following a staff-level agreement on the third review of the country’s $3 billion extended credit facility.
This development is a significant boost to the country’s economy, which has been showing signs of stabilisation and growth.
IMF mission staff to Ghana, Stéphane Roudet, told the media last Friday, that the staff-level agreement was reached following the conclusion of a two-week assessment of the country’s fiscal data by the mission staff from the Fund.
According to him, the IMF team conducted the thorough review of Ghana’s performance, evaluating progress against predetermined targets and structural benchmarks as of June 30, 2024.
This assessment was crucial in unlocking the fourth tranche of the $3 billion extended credit facility, which is subject to the approval of the IMF Board.
This tranche if approved will bring Ghana’s total disbursements to US$ 1.96 billion dollars.
The IMF’s support is aimed at restoring macroeconomic stability and reducing debt vulnerabilities in the country.
Ghana has made notable progress in adjusting its fiscal position, with a primary fiscal balance improvement of over 4% of GDP last year.
The Finance Ministry has said the government is committed to further advancing fiscal consolidation.
Eurobond Debt Exchange
Meanwhile, the Minister of Finance, Dr. Mohammed Amin Adam, has announced the completion of the country’s Eurobond debt exchange.
The exchange, which was achieved in less than nine months, will see the exchange of US$13 billion in Eurobonds for new bonds in the coming weeks, he said.
Addressing the media in Accra on Thursday, Dr. Adam indicated that the government obtained more than 98% consent, which is significantly higher than the 65% threshold from bondholders following the launch of the Exchange Offer and Consent Solicitation 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 added that the development cures Ghana’s default on international bonds, paving the way for normalised financial relationships with rating agencies and international markets.
“In essence, Ghana has now restructured over 90% of its eligible external debt, marking a significant milestone in its economic recovery,” he said, adding, “This swift action showcases the government’s unwavering commitment to restoring financial and debt sustainability.”
By Ernest Kofi Adu