Release of 2nd tranche of IMF cash a resounding affirmation of Ghana’s progress – Ofori-Atta
Finance Minister Ken Ofori-Atta has expressed welcome the International Monetary Fund’s release of the second tranche of Ghana’s extended credit facility with the Bretton Woods institution.
According to the Finance Minister, the approval of an additional $600 million for Ghana’s bailout programme signifies the country’s progress in its economic reform trajectory.
“Earlier today, the IMF endorsed the first review of our programme. This is a resounding affirmation that the programme is advancing steadily, and our reform trajectory remains steadfast. Consequently, the endorsement has unlocked a $600 million disbursement from the IMF and will pave the way for an additional $300 million disbursement from the World Bank,” Mr. Ofori-Atta said.
He made these remarks during a joint press conference between the Ministry of Finance and the IMF on Friday, January 19, 2024.
The International Monetary Fund approved the second tranche of US$600 million for Ghana for immediate disbursement.
“The Executive Board of the International Monetary Fund (IMF) completed today the First review of the $3 billion, 36-month Extended Credit Facility (ECF) Arrangement, which was approved by the Board on May, 17, 2023 , as well as the 2023 Article IV Consultation with Ghana. The completion of the first ECF review allows for an immediate disbursement of SDR 451.4 million (about US$600 million), bringing Ghana’s total disbursements under the arrangement to about US$1.2 billion,” the IMF said in a press release.
This comes after Ghana struck a deal with its bilateral lenders, including China and France, late last week—a key step that has unlocked the second disbursement.
This approval means Ghana has successfully passed its first review under the Fund program after receiving the initial tranche in May last year.
The government has indicated that this fresh funding will be utilized to support activities in the 2024 budget.
Source: citinewsroom
