Economist Prof. John Gatsi, is doubtful that Ghana would get approval for its first loan tranche of US$600 million from the International Monetary Fund (IMF) by Wednesday, May 17.
The government has stated that the first tranche of the US$ 3 billion bailout will hit the account of the Bank of Ghana later this week.
But Prof. Gatsi in an interview with Citi Business News believes the government will be unable to access the loan within the specified timeframe due to yet-to-be-completed processes.
“I am not sure the IMF money will be arriving by this week or next week. The protocol we know with the IMF is that, after the financial assurances which is the last leg of the processes, the IMF will sit, deliberate and take a decision. That has not been done.”
“I do not know whether the IMF has given a waiver to Ghana that has not been announced, so I am limited to say that the IMF will release the money to Ghana without those processes. Even if the protocols are done, it will take some days for the money to be released, so I am skeptical that the money will come in soon”, the Dean of the University of Cape Coast Business School added.
Ghana secured financing assurances from the Paris Club following the establishment of the Official Creditor Committee co-chaired by China and France.
This comes months after Ghana’s bid to get financing assurances from its international lenders to enable it to get the necessary bailout support from the International Monetary Fund.
By this, the move will pave the way for the Fund’s Board approval of a programme for Ghana with the expected timeline of May 2023.
The approval will also enable the country to secure a $3 billion Extended Credit Facility (ECF) to boost its Balance of Payment.
With this, the government is already eyeing Ghana’s possible return to the international capital market soon.