IMF Board to review Ghana’s programme on June 28; $360 million disbursement possible
The International Monetary Fund (IMF) has scheduled a board meeting for June 28, 2024, to consider the second programme review for Ghana, with the potential approval of a $360 million disbursement.
The meeting follows consultations with the official creditor committee, according to sources familiar with the discussions.
Programme Review and Financial Assistance
The IMF board will scrutinize a report from IMF staff detailing the progress of Ghana’s economic programme.
This assessment will focus on whether Ghana has met the qualitative and quantitative targets established under the IMF programme.
Should the review be favorable, the Bank of Ghana could receive the funds within two days of approval. The meeting will also include the release of the latest debt sustainability analysis.
Debt Restructuring and Economic Performance
Insiders have indicated that Ghana has made notable improvements in managing its debt, potentially influencing its debt classification favorably.
The IMF’s management recommended the board meeting after receiving formal confirmation from the official creditor committee regarding Ghana’s debt restructuring efforts.
Ghana has reached an agreement with bilateral creditors to restructure $5.4 billion in debt, marking a significant step forward in its economic recovery plan.
Statements from IMF Officials
Abebe Selassie, Director of the African Department at the IMF, confirmed during the spring meetings in April that the board would proceed with the review.
“To be clear, they have provided financing assurances, and that remains in effect. We are not envisaging that it will be an issue for our ability to conclude the next review and provide the disbursement that is pending,” Mr Selassie stated.
Mission Chief Stephane Roudet echoed this sentiment, noting that Ghana has surpassed expectations under the current programme. “Ghana’s programme is delivering on its promises and in fact, it is over-delivering,” Mr Roudet said.
Government’s Optimism
The Government remains optimistic about the upcoming review. Finance Minister Dr. Mohammed Amin Adam, speaking at a press conference in Accra, expressed confidence that Ghana has met all necessary requirements to secure the IMF’s approval.
“We are optimistic of passing the board review,” Dr. Adam stated, following the successful negotiation of the Memorandum of Understanding with the official creditors.
The upcoming IMF board meeting is poised to be a critical juncture for Ghana, potentially unlocking significant financial assistance and further stabilizing the country’s economic outlook.
