The $360m third tranche under Ghana’s $3bn Extended Credit Facility (ECF) is expected to hit the account of the Bank of Ghana (BoG) today.
The IMF Executive Board has approved the second review of Ghana’s $3 billion loan program, which allows for the immediate disbursement of approximately $360 million.
This decision follows Ghana’s successful negotiation with its official creditor committee, a necessary step to unlock the second tranche of the loan.
This latest disbursement brings the total IMF funds received by Ghana under the three-year bailout program to $1.56 billion.
The program is designed to assist Ghana in overcoming its most severe economic crisis in a generation.
IMF Deputy Managing Director Kenji Okamura in a statement on Friday, June 28, commented on Ghana’s progress under the Fund programme stating that “Government’s strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is paying off, with clear signs of stabilization emerging.”
The need for IMF support arose in 2022 when Ghana faced severe economic challenges, including a depreciating cedi, soaring inflation, and high debt-service costs exacerbated by the COVID-19 pandemic, Russia’s invasion of Ukraine, and high global interest rates.
Despite these challenges, Ghana’s economy has shown signs of recovery. Economic growth in 2023 was 2.9%, and the first quarter of 2024 saw a growth rate of 4.7%. Inflation has significantly decreased from a peak of over 54% in December 2022 to 23.1% recently, although the cedi continues to depreciate.
Meanwhile, the IMF, BoG, and the Finance Ministry are set to hold a joint press briefing this afternoon to speak to and answer questions by journalists on the progress made so far by the country under the Fund programme with expectations of the commencement of the third review of Ghana’s programme.