Finance Minister Ken Ofori-Atta has announced that the country is expecting the second tranche of IMF bailout funds in December.
These funds aim to bolster Ghana’s balance of payments for 2023 and 2024.
According to the Bank of Ghana’s June 2023 Economic and Financial Stability Report, the country’s balance of payments showed a $107.8 million deficit at the end of June 2023, equivalent to 0.1% of GDP. This represented a significant improvement compared to the previous year.
Mr. Ofori-Atta revealed during a meeting in Accra that Ghana is preparing for its first review with the IMF in November as they await the disbursement of the $600 million second tranche.
Additionally, there are plans to collaborate with the World Bank to secure a Development Policy Operation (DPO) that could provide an additional $300 million, potentially bringing the total injection to around $1 billion to address the Bank of Ghana’s balance of payment challenges.
Mr. Ofori-Atta expressed optimism about concluding discussions with the Paris Club and bilateral creditors by the end of the year.
In May 2023, Ghana received the first $600 million tranche of a $3 billion three-year extended credit facility from the IMF to revitalize the country’s economy.
In August 2023, the IMF emphasized the importance of the Bank of Ghana maintaining its policy mandates, despite financial setbacks in the previous fiscal year.
The IMF noted the need for the central bank to take decisive actions to steer inflation back toward its target of 8 percent, acknowledging the Bank of Ghana’s GHS 60 billion loss due to the government’s Domestic Debt Exchange, deemed necessary for restoring macroeconomic stability and public sustainability.