Ghana maintains IMF timeline, prepares for Executive Board meeting

Ghana’s Ministry of Finance has confirmed adherence to the indicative timeline set by the International Monetary Fund (IMF) for the second tranche disbursement of a $600 million loan. This clarification comes as part of the West African nation’s ongoing engagement with a three-year $3 billion IMF loan-support program.

In June 2023, the IMF established performance criteria to be met by the end of that month for its first review process. Ghana successfully completed this review on October 6, leading to a Staff Level Agreement (SLA), a crucial step towards receiving the subsequent $600 million installment.

Contrary to reports of missed deadlines, the Ministry of Finance has stated that no specific date was set by the IMF for this disbursement. On November 1, misinformation had circulated suggesting Ghana failed to meet a deadline; however, this date was initially indicated as a timeline for completion of the first review and not as a fixed deadline.

The misinformation was further addressed when Myjoyonline published an article on November 2, clarifying that the IMF Executive Board’s meeting to approve Ghana’s first review would take place before any funds are released. The Ministry emphasized the importance of accurate information sharing and pointed out Myjoyonline’s earlier contradictory reporting.

Furthermore, the Ministry highlighted their strategic plan involves negotiating with external creditors, particularly the Official Creditor Committee (OCC) of the Paris Club, to secure a Memorandum of Understanding on debt restructuring. These negotiations are part of the broader objectives under the IMF loan-support program.

Looking ahead, the IMF Executive Board is scheduled to meet in the third week of November 2023 to discuss Ghana’s SLA and potentially approve another disbursement of $600 million from the IMF funds, following the successful first review approval.

Ghana’s government continues to encourage media outlets and the public to seek factual information and remains committed to transparently communicating its progress under the IMF-supported program. The Ministry’s efforts reflect a concerted push towards economic stability and assertive management of national debt obligations.

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