2024-01-19 18:39:58
(Updates with official statement, adds IMF quotes and forecast
in paragraphs 3-5)
ACCRA, Jan 19 (Archyde.com) – The International Monetary
Fund’s board approved a first review of Ghana’s loan programme
on Friday, allowing for the immediate disbursement of regarding $600
million under its $3 billion bailout programme, it said on
Friday.
The decision comes following the gold, oil and cocoa
producer reached a deal to restructure $5.4 billion of loans
with its official creditors, a key step to unlocking the second
tranche of IMF funding.
“All quantitative performance criteria for the first
review and almost all indicative targets and structural
benchmarks were met,” the IMF said in a statement.
The authorities’ reform efforts have helped to improve
growth, decrease inflation and increase international reserves,
the Fund said, forecasting that the economy would grow 2.3% in
2023 and 2.8% in 2024.
It did not say exactly when the approved tranche would
be disbursed, but two senior government officials close to the
discussions told Archyde.com the payout would come by Wednesday at
the latest.
‘SHOT IN THE ARM’
Ghana asked the IMF for financial support in 2022 as it
grappled with its worst economic crisis in a generation, which
came amid spiralling public debt-servicing costs.
“The board decision, along with the imminent release of
funds, is a shot in the arm for the economy, especially the
exchange rate, which remains vulnerable to fluctuations in
sentiments and central bank reserve capacity,” Leslie Dwight
Mensah, an economist at the Institute for Fiscal Studies in
Accra, told Archyde.com.
The second tranche, once signed off, should trigger $550
million in additional World Bank funding, Ghana’s Finance
Ministry said last week – $300 million in budget support, which
the World Bank confirmed on Thursday, and $250 million for a
fund to support financial sector stability.
The West African country, which defaulted on most external
debt following servicing costs soared, also needs to reach a relief
deal with private holders of regarding $13 billion in international
bonds.
It is aiming to restructure two-thirds of its external debt
that was regarding $30 billion at the end of 2022.
(Writing by Anait Miridzhanian; Editing by Hugh Lawson, Leslie
Adler and Toby Chopra)
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