The second tranche of the International Monetary Fund (IMF) cash has been credited to the Bank of Ghana’s (BoG) account on January 23, 2024, sources indicate.
At the Joint Press Conference between the IMF, Ministry of Finance, and Bank of Ghana last Friday, January 19, the IMF Mission Chief for Ghana, Stephane Roudet disclosed that the $600 million will be disbursed to the account of the BoG “in a matter of hours”.
The immediate impact of this disbursement will be the Bank of Ghana’s International Reserves, as it will put it in a strong position to support the local currency. Some market analysts have also argued that it will go a long way to help stabilize the Ghana cedi.
The second tranche of funds will also be advanced towards supporting some projects in the budget.
This represents a departure from the past when “IMF cash” was primarily set aside for Balance of Payment support for the country.
The IMF Executive Board last Friday, January 19, 2024, approved the transfer of $600 million to Ghana.
This was after Ghana completed the 2023 Article IV consultation and the first review of Ghana’s 36-month Extended Credit Facility arrangement. Approval of the first review enables the immediate disbursement of SDR 451.4 million (about US$600 million).
According to the IMF, Ghana’s performance under the program has been strong. All quantitative performance criteria for the first review and almost all indicative targets and structural benchmarks were met.
The IMF Executive Board added that the authorities’ reforms are bearing fruit, and signs of economic stabilization are emerging.
Reacting to this new development, Former President, John Mahama has called on the government to exercise prudence in utilizing the recently approved $600 million IMF bailout to alleviate the economic challenges facing Ghanaians.
Expressing concern about the persistent hardships faced by Ghanaians, Mahama emphasized that the Akufo-Addo-led administration must ensure that the funds are used judiciously to bring relief to the suffering citizens.