Ghana is poised to receive its second tranche of the International Monetary Fund (IMF) bailout package in December this year, according to Finance Minister Ken Ofori-Atta. This financial support is intended to bolster the government’s balance of payments (BOP) for the years 2023 and 2024.
The announcement came during the 3rd Ghana Investment Promotion Centre (GIPC) CEO breakfast meeting in Accra, where the Finance Minister shared insights into the country’s economic progress.
The Bank of Ghana’s June 2023 summary of the Economic and Financial Stability Report indicated a BOP deficit of $107.8 million, approximately 0.1% of GDP. This deficit was notably lower than the corresponding period in 2022, suggesting improved economic stability.
Ofori-Atta expressed confidence that Ghana was prepared for its first IMF review scheduled for November, in anticipation of the $600 million second tranche.
Additionally, discussions with the World Bank are underway to secure a Development Policy Operation (DPO) loan of $300 million, potentially increasing the total support to $1 billion for addressing the Bank of Ghana’s balance of payment challenges.
The Finance Minister also conveyed optimism regarding ongoing negotiations with the Paris Club and bilateral creditors, with expectations of concluding agreements by year-end.
In May 2023, Ghana received the initial tranche of its $3 billion three-year extended credit facility from the IMF, aimed at revitalizing the nation’s struggling economy.
Meanwhile, the International Monetary Fund (IMF) issued a caution to the Bank of Ghana in August 2023, emphasizing the importance of maintaining its policy mandates despite financial setbacks experienced in the fiscal year ending 2022. The IMF urged the central bank to take decisive measures to bring inflation back to its target of 8 percent.
The IMF acknowledged the Bank of Ghana’s GHS 60 billion loss, attributing it to the government’s Domestic Debt Exchange (DDE) and describing it as a necessary step to restore macroeconomic stability and public sustainability. Despite this loss, the IMF asserted that the central bank could still fulfill its policy mandates effectively.