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The Official Creditor Committee has reportedly granted approval to the Ghanaian government for the term agreement, allowing the IMF Executive Board to release the second tranche of the $3 billion extended credit facility, comprising $600 million.
In an interview with Bloomberg, Finance Minister Ken Ofori-Atta confirmed the development, stating, “We are receiving the draft term sheet today, so I think we are about done.” He added, “We will look into the details, but then it’s good enough for the IMF to continue with their work, so we’re in good shape.”
To initiate the first review under the $3 billion ECF program, Ghana merely needs to secure an agreement in principle before seeking approval from the IMF Board for the Staff Level Agreement (SLA) dated October 6, 2023.
The approval of the IMF Board will pave the way for the prompt disbursement of the second $600 million tranche in the coming days.
In October, Abebe Selassie, the Director of the IMF for Africa, acknowledged Ghana’s commendable progress and confirmed the country’s fulfillment of its responsibilities. Selassie highlighted the expeditious establishment of the official creditor committee in Ghana, contrasting it with the lengthier process in Zambia.
Leandro Medina, the IMF’s Resident Representative for Ghana, expressed optimism about the ongoing discussions between Ghana and its formal creditors, describing the progress as “promising.”
The anticipated IMF Board approval is expected to serve as a catalyst for World Bank Funding amounting to $550 million. The World Bank has committed $300 million for budgetary support and an additional $250 million for Ghana’s Financial Stability Fund.
A statement noted that these funds are anticipated to be received before the end of February 2024, with a positive and robust impact expected on Ghana’s reserve position and exchange rate stability.
Source:Omanghana.com
