Ghana’s Minister of State at the Finance Ministry, Dr. Mohammed Amin Adam Anta, has confirmed that once the International Monetary Fund (IMF) Executive Board approves Ghana’s extended credit facility (ECF) request, the country will receive the first tranche of $600 million.
In a phone interview with Reuters on Sunday, May 14, the Karaga Member of Parliament (MP) stated that an additional $600 million tranche is expected by the end of the year, followed by equal tranches of $360 million disbursed after semi-annual reviews.
Dr. Adam Anta stated, “We expect a deal on Wednesday,” expressing confidence in a swift approval. The initial $600 million tranche will be disbursed immediately after the Executive Board’s approval and is anticipated to reach the country within a week.
This positive development comes after the Paris Club, chaired by China, offered significant support to Ghana on Friday, May 12. The creditor committee thoroughly assessed Ghana’s macroeconomic and financial situation, including its long-term debt sustainability, and reviewed the country’s formal request for debt treatment under the “Common Framework for Debt Treatments beyond the DSSI,” which was endorsed by the Paris Club under the Saudi G20 Presidency in November 2020.
In a statement issued on Friday, the Paris Club expressed its support for Ghana’s envisaged IMF upper credit tranche (UCT) program and urged the swift adoption of the program by the IMF Executive Board to address Ghana’s urgent financing needs. Furthermore, the creditor committee encouraged Multilateral Development Banks (MDBs) to maximize their support to Ghana in meeting its long-term financial requirements.
President Nana Addo Dankwa Akufo-Addo expressed great satisfaction at this development and referred to it as the “last hurdle” crossed during a meeting with the Ghana Catholic Bishops’ Conference at the Jubilee House. He described it as a significant day in Ghana’s recent history, announcing that the Paris Club had met and approved Ghana’s request for the IMF.
The disbursement of the initial $600 million tranche, once approved by the IMF, is poised to provide a boost to Ghana’s financial situation and support its ongoing efforts to address its urgent financing needs.