The first tranche of cash from the International Monetary Fund (IMF), meant for budget support and to help stabilize the cedi, has hit the accounts of the Central Bank today, 20th May, 2023.
The cash support is the first tranche of the $3 billion bailout package approved by the International Monetary Fund, IMF.
A tweet from the Finance Minister, Ken Ofori-Atta stated that “the Bank of Ghana informs me that the first tranche of $600 million of Ghana’s low interest $3 billion ECF facility has been received. These funds will be used for BOP [Balance of Payment] and budget support and will also help stabilise the FX rate and trigger a cascading effect on inflation”.
Confirming the drop on Eyewitness News on Citi FM on Friday, Minister of Information, Kojo Oppong Nkrumah noted that, “Yes that’s the confirmation I have. As we have mentioned, there are supposed to be 7 different disbursements, the first being the $600 million received on the back of conclusion of the approval by the Board.”
He explained that Ghana will only get additional tranches if it meets the assessment criteria.
“The remaining tranches will be based on the country’s ability to meet the assessment criteria, which is spelt out in the programme that has been signed off. There are about 50 structural reforms we have undertaken to do on various parts of our economic life to ensure that we build resilience moving forward.
He added, “Nine of them will form part of the development assessment which is supposed to be concluded before the end of this year. The meeting of those nine is what will translate into further disbursement of other outstanding amount. As we have said over and over again, it’s not just about the money, but the reforms that need to take place to ensure that we build resilience in the Ghanaian economy. All of us will have to focus in doing our part to make that happen”.
Earlier this month, Ghana secured financing assurances from the Paris Club following the establishment the Official Creditor Committee co-chaired by China & France.
This came months after Ghana had been seeking help from international lenders to provide financing assurances which is a condition for the IMF’s board to sign off the IMF programme for the country.
Ghana’s struggling economy pushed it to seek for assistance from the IMF last year.
The Ghanaian economy has been faced with some critical ailing conditions for some time now including rising inflation, a depreciating currency, high budget deficit amongst others.