Finance Minister Anticipates Swift Approval for $600 Million IMF Tranche Following Positive Program Review

The Minister of Finance, Ken Ofori-Atta, is optimistic about the swift disbursement of the second tranche of $600 million from the International Monetary Fund (IMF). This confidence was expressed during a joint press conference held on January 19, 2024, involving the IMF, the Finance Ministry, and the Bank of Ghana.

The announcement came after the Executive Board of the IMF completed the first review of Ghana’s $3 billion, 36-month Extended Credit Facility (ECF) arrangement. This arrangement had been approved by the Board on May 17, 2023, along with the 2023 Article IV Consultation with Ghana.

Ken Ofori-Atta clarified that the IMF board’s approval of the first review for Ghana’s loan program would result in the disbursement of approximately $600 million under the $3 billion bailout initiative. He stated, “It is with great honor that I can announce to you that earlier today, the International Monetary Fund endorsed the first review of our program. This is a resounding affirmation that the program is advancing steadily, and our reform trajectory remains steadfast.”

As a consequence of this endorsement, the disbursement of $600 million from the IMF is unlocked, and it will also pave the way for an additional $300 million disbursement from the World Bank under the development policy operation financing.

Regarding Ghana’s economic performance, the Deputy Managing Director and Acting Chair, Mr. Bo Li, highlighted the positive results achieved through efforts to reorient macroeconomic policies, restructure debt, and implement wide-ranging reforms. The statement emphasized the need for continued policy and reform implementation to fully restore macroeconomic stability, ensure debt sustainability, and foster higher and more inclusive growth. Key aspects include reducing deficits, mobilizing additional domestic revenue, streamlining expenditure, and finalizing comprehensive debt restructuring. Efforts to protect the vulnerable and create space for social and development spending, along with reforms to improve tax administration, strengthen expenditure control, manage arrears, enhance fiscal rules and institutions, and improve State-Owned Enterprises (SOEs) management, are deemed essential for lasting adjustment.