Ghana is expected to receive the International Monetary Fund’s (IMF) Board approval for a $3 billion bailout by the end of May 2023, according to the Finance Minister, Ken Ofori-Atta. The minister made the announcement during an Investors Presentation Forum, stating that Ghana has made significant progress in restructuring its debt and called on external creditors to support the country’s application for an IMF program. He emphasized that the country was committed to reaching an agreement in principle with Eurobond holders and their advisors, and hoped to achieve a rapid negotiation of a Memorandum of Understanding (MoU) with creditors.
Ghana secured a staff-level agreement (SLA) for the $3 billion request in December 2022 but has been unable to progress due to bilateral creditors’ haggling over the terms of the debt restructuring exercise. Efforts to move to the final stage have taken longer than expected, but Ofori-Atta’s remarks indicate that the process is nearing completion. The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, also expressed optimism that the fund’s Executive Board would grant final approval to Ghana’s bailout request soon.
The IMF bailout package is expected to help Ghana recover from the economic impact of the COVID-19 pandemic, which affected the country’s fiscal and external balances. The funds will also help to support Ghana’s medium-term economic reform program, which focuses on macroeconomic stability, debt sustainability, and structural reforms to boost growth and job creation.
The Finance Minister’s call on external creditors to support Ghana’s application for an IMF program highlights the country’s efforts to address its debt challenges and restore fiscal stability. The announcement also provides a boost to the country’s economic recovery efforts and signals confidence in Ghana’s prospects for sustainable growth. As Ghana awaits final approval for the IMF bailout package, the government and stakeholders will continue to work towards implementing measures to enhance fiscal discipline, boost revenue mobilization, and promote economic diversification.