The International Monetary Fund (IMF) has reassured Ghana that it will receive its next tranche of funding support amounting to US$360 million in June 2024, despite the nation not having finalized a debt agreement with its official bilateral creditors. This announcement was made by Mr. Abebe Aemro Selassie, Director of the IMF's African Department, during a media briefing in Washington, USA.
This development follows a staff-level agreement reached on April 13, 2024, between Ghana and the IMF under its second review program. The IMF mission team recognized Ghana's “strong progress” under its current loan-support program, which is part of a broader US$3 billion three-year Extended Credit Facility (ECF) agreement initiated in May 2023.
While the next procedural step for Ghana would be signing a Memorandum of Understanding (MoU) with its creditors, consistent with terms agreed earlier in January, Mr. Selassie clarified that this is not a prerequisite for the upcoming disbursement. He highlighted that the staff-level agreement is a critical component for the review and subsequent financial support.
The briefing, which coincided with the launch of the Regional Economic Outlook on Sub-Saharan Africa at the 2024 IMF/World Bank Group Spring Meetings, also addressed the ongoing discussions between the Ghanaian government and its creditors. Despite not having reached an MoU with its Eurobond holders, the IMF remains optimistic about Ghana's negotiations and is prepared to continue its financial support.
Mr. Selassie also commented on the effectiveness of the G20 Common Framework in aiding African countries like Ghana and Zambia in their debt negotiations. He acknowledged that while the outcomes have not been fully desirable, significant progress has been made in moving towards debt sustainability.
Overall, the IMF's continued support reflects confidence in Ghana's adherence to its reform milestones and macroeconomic targets under the PC-PEG program, which aims to restore stability, build resilience, and promote inclusive growth post-COVID-19.