Emmanuel OchayiGhana is on the brink of securing $1.15 billion in vital funding from the International Monetary Fund (IMF) and the World Bank. Finance Minister Ken Ofori-Atta voiced optimism, affirming a potential agreement with bilateral creditors by February’s end, highlighted in a conversation with Bloomberg.
Ofori-Atta conveyed the assurance that the forthcoming meeting on Jan. 8 would likely finalize terms, steering Ghana towards the IMF executive board’s evaluation of its performance. This evaluation could lead to a $600 million disbursement, forming the second segment of a $3 billion rescue package initiated in May.
Despite slight setbacks, Ofori-Atta indicated the anticipated board assembly on Jan. 18. He further emphasized that this approval would also unlock two World Bank disbursements amounting to $550 million. The disbursement allocations comprise $300 million for budgetary support and an additional $250 million to fortify Ghana’s Financial Stability Fund. Ofori-Atta stated, “We are in good shape.”
Projections suggest the budgetary support disbursement might materialize by month-end, while the contribution to the financial institution liquidity fund could transpire by February’s conclusion.
Finance Minister Ofori-Atta’s said
“We are confident official creditors will soon reach an agreement, paving the way for critical disbursements. Our expectation is to receive the necessary support by the end of February.”
However, Ghana faced severe economic challenges with inflation surpassing 50% but has since reduced to 26.4% by November 2023.
The Cedi’s devaluation by over 11% in the first half of 2023 heightened economic concerns.
Following suspension of payments on a portion of its $28.4 billion external debt in December 2022, Ghana secured a $3 billion deal with the IMF.
In a separate issue, Ghana’s Central Bank reported a $5 billion loss over a year, triggering protests in Accra demanding the resignation of Governor Ernest Addison last October.
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