Ken Ofori-Atta, Ghana’s Minister of Finance, stands next to Stephen Roode, Head of the IMF’s Delegation to Ghana, during a press conference in Accra, Ghana, on December 13, 2022.Reuters/Cooper Inveen/File photo
Economist and political risk analyst Dr. Theophilus Achiampong is optimistic that Ghana will secure a second round of funding from the International Monetary Fund (IMF).
The fund has rescheduled a board meeting to review Ghana’s program and approve approximately $600 million in contributions to the country until January 19, 2024.
talk joy newsDr. Acheampong attributed the delay in the Review Conference to the ongoing negotiations on Ghana’s bilateral external debt restructuring.
“From all indications, the current hurdle has been cleared, which means that when the IMF Executive Board meets in the next three to four days, Ghana will indeed consider its first program review. 600 million is expected to be released after it was completed in October of last year and subject to subsequent review and no issues. I indicated that the funds would be disbursed near the end of January. ”
In an interview on Tuesday, January 16, he said the IMF deal not only provides a quick boost to the government but also encourages more businesses to participate in the economic market.
Experts explained that if the IMF had waited until February or March, companies would have finished their financial activities for the year and started collecting profits.
Achiampong said this could cause the currency’s value to fall significantly as people may bet on the cedi.
“But given that this has actually happened and the release of funds has materialized, it will go a long way in increasing reserves and, most importantly, sending a signal that the IMF program is on track. But there are challenges. There are still some areas that need to be ironed out, but given the program and the pace of implementation, this is actually a very positive thing.”
background
The IMF Executive Board was originally scheduled to meet on January 18, 2024, to consider Ghana’s program.
However, the board meeting was rescheduled to allow more time for program review and approval.
The delay was due to the fact that Ghana had not yet reached an agreement with its bilateral creditors.
On January 12, 2024, Ghana and the bilateral creditors reached an agreement, paving the way for the rescheduling of the Council meeting.
If all goes well, Ghana will receive the $600 million it requested under the program within four business days of the meeting.
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