Ghana expects a major financing boost of $1.15 billion by the end of February from the World Bank and the International Monetary Fund (IMF), which is a significant step for the country’s economic recovery.
This eagerly awaited financial support comes as bilateral creditors edge closer to finalizing the terms of a crucial debt restructuring agreement.
Finance Minister Ken Ofori-Atta expressed confidence that official creditors would reach a consensus after the scheduled meeting on Monday, January 8.
The successful agreement would pave the way for the IMF executive board to convene and assess Ghana’s performance under a program initiated in May, potentially approving a disbursement of $600 million as the second tranche of a $3 billion bailout.
Despite some delays, Ofori-Atta indicated that the board is likely to meet on January 18.
The anticipated board approval is not only a positive step for the IMF bailout but also sets in motion the process for two significant disbursements from the World Bank, totaling $550 million.
The World Bank has allocated $300 million in budgetary support and an additional $250 million for Ghana’s Financial Stability Fund. Ofori-Atta expressed optimism, stating, “we are in good shape.”
The first disbursement, earmarked for budgetary support, is expected to be realized by the end of this month. The second, aimed at contributing to the Financial Stability Fund, which provides liquidity to financial institutions affected by domestic debt restructuring, is anticipated by the end of February.
These developments follow Ghana’s initiation of critical talks with authorized creditors on January 8 to formulate a comprehensive plan for restructuring approximately $5.4 billion in external debt.
The outcome of these discussions not only holds immense significance for Ghana’s financial landscape but is intricately linked to the fate of the remaining $2.4 billion from the $3 billion IMF bailout package.