Minister of State at the Finance Ministry, Dr. Mohammed Amin Adam Anta, has stated that the International Monetary Fund (IMF) is likely to transfer the first tranche of $600 million to Ghana immediately after the Executive Board approves the country’s request for an extended credit facility (ECF).
According to him, the second tranche of the same amount will be released before the end of the year, with the remainder disbursed in equal tranches of $360 million after semi-annual review.
“We expect a deal on Wednesday,” Dr. Anta is quoted to have told Reuters, adding, “With the disbursement, there is going to be $600 million as a first tranche just immediately after the approval.”
He stated that the first tranche will be sent to the country within a week of the Executive Board’s approval.
This comes on the heels of the Paris Club’s overwhelming support for Ghana on Friday, May 12 at a meeting co-chaired by China in Paris.
The Club said in a statement on Friday that the creditor committee examined Ghana’s macroeconomic and financial situation.
This included the country’s long-term debt sustainability, and its formal request for a debt treatment under the ‘Common Framework for Debt Treatments Beyond the DSSI,’ which was also endorsed by the Paris Club.
The creditor committee stated that it supports Ghana’s proposed IMF upper credit tranche (UCT) programme and its speedy acceptance by the IMF Executive Board to address Ghana’s urgent funding needs.
“The creditor committee encourages Multilateral Development Banks (MDBs) to maximise their support for Ghana to meet its long-term financial needs,” the statement noted.
When President Akufo-Addo recently met the Ghana Catholic Bishops’ Conference at Jubilee House, he could not hide his joy at Ghana having overcome the “last hurdle.”
“Today is a very special day in the recent history of Ghana. At long last today, we have been informed that the last hurdle towards our agreement with the [International Monetary] Fund has been overcome, which is that the Paris Club met today in Paris with the creditor’s committee co-chaired by China and has okayed and approved Ghana’s request of the IMF,” he said.
By Ernest Kofi Adu