The Finance Minister, Ken Ofori-Atta has disclosed that the country could receive a billion dollars (US$1bn) before the turn of the year to support the central bank’s balance of payment through IMF second tranche, World Bank Development Policy Operations (DPO) assistance as well as Eurobond investors.
Ghana is seeking $3 billion from the Fund to shore up its battered economy and has also turned to the World Bank as it fights to restore macroeconomic stability and end its worst economic crisis in a generation.
Government is far along in talks with the World Bank to provide additional support of $900 million to be disbursed in three equal instalments of $300 million over three years.
Speaking at the 3rd CEO’s Breakfast Meeting -GC100 Companies Edition in Accra, he opined “We are going to have our first review after the approval in November, we are working assiduously to make sure that we are able to meet that and I believe that we will.
The quantitative performance indicators, about three of them and some structural benchmarks but I think all of that we have come a long way and we are ready for the mission and that comes at the end of September, so that we can try and get a staff level agreement once the mission is here and we will be able to go the board in November for the release of the second tranche -US$600m.
In addition to that there are certain things we need to do with the World Bank so we can get our DPO which will be another US$300m, so I believe that we are on course to maybe get a billion dollars by year end to support the Bank of Ghana’s balance of payment issues.”
This is to assess achievement of targets set under the performance indicators, namely quantitative performance criteria, indicative targets, and structural benchmarks in 2023.
The first review is scheduled for September 25 through the beginning of October 2023 with a potential Board approval date in November this year.A successful review will trigger an immediate release of the second tranche of $600 million.
According to Ofori- Atta the staff level agreement will help the country in its negotiation posture, providing firm assurance that by year end, the government will secure both the OCC of the Paris Club and Eurobond investors’ negotiations sealed.
The government in the past weeks have completed the domestic debt restructuring, cocoa bills, domestic dollar bond and have reached an agreement with pension funds.
The Bank of Ghana (BoG) received the initial instalment of $600 million of the ECF as part of the $3 billion IMF-supported post COVID-19 Programme for Economic Growth (PC-PEG) approved by the IMF Executive Board on May 17, this year.
It is aimed at restoring macroeconomic stability and debt sustainability, building resilience through the implementation of wide ranging and strong structural reforms and laying the foundation for stronger and more inclusive growth, while protecting the poor and vulnerable.
The Minister also lauded GIPC’s Breakfast Meeting, maintaining that “this is the beginning of very important conversation as to what it is that we should do in the environment to make it more business friendly and we will continue with these engagements going forward.”
GIPC reiterate partnerships call
Yofi Grant, CEO of GIPC on his part reechoed his desire to drive partnerships between the public and private sectors and reckons a platform such as the ‘Breakfast Meeting’ helps to actualize it.
Additionally, he asserted the Mutual Prosperity Dialogues which is slated in October is expected to firm up the relationship with the public and private sector.
“This platform gives us that opportunity to be able to talk to the private sector and for us selecting the Ghana Club 100 companies is a good start -we will continue to do that, we will also do one where will have the public sector engage fully. The important thing for us is the partnership between the private sector and the public sector, even as we raise investment capitals to go into the private sector, we need to ensure that the have a public sector that is supportive, efficient and enables the private sector to grow otherwise.
Next month we are going to have the Mutual Prosperity Dialogues which is a core structure to formalize the partnership between the public sector and private sector in the investment space.”
The CEO’s Breakfast Meeting provided an opportunity for relevant stakeholders to network, share knowledge, and explore ways to promote Public-Private partnerships, and bridge the gap for sustainable economic development.