The International Monetary Fund (IMF) has given its approval for the initial assessment of Ghana’s loan program, enabling the immediate payout of approximately $600 million from the $3 billion bailout initiative.
This decision comes after Ghana successfully negotiated a $5.4 billion debt restructuring deal with its official creditors, a crucial step to unlock the second installment of IMF funding.
The IMF noted that Ghana met all quantitative performance criteria for the first review, along with almost all indicative targets and structural benchmarks. The Fund recognized Ghana’s reform efforts, leading to improved growth, reduced inflation, and increased international reserves.
The IMF projects a 2.3% growth in Ghana’s economy for 2023 and 2.8% for 2024.
Stéphane Roudet, the IMF Mission chief for Ghana, confirmed that the approved tranche would be available to the central bank within hours. This decision is seen as a positive development for Ghana’s economy, with expectations of a positive impact on the exchange rate.
The release of the second tranche is anticipated to trigger an additional $550 million in World Bank funding for Ghana. Finance Minister Ken Ofori-Atta mentioned that the World Bank is set to meet on January 23 to approve disbursements, including $300 million for budget support and $250 million for a fund supporting financial sector stability.