Ghana’s 1st $600m IMF Bailout to be received after Wednesday

, the Minister of State at the Finance Ministry, has confirmed that once the Executive Board of the International Monetary Fund (IMF) approves Ghana’s extended credit facility (ECF) request, an initial sum of $600 million will be disbursed immediately.

In a phone interview with Reuters on Sunday, May 14, the Member of Parliament (MP) for Karaga stated that a second tranche of the same amount will be provided by the end of the year, with the remaining funds disbursed in equal installments of $360 million after semi-annual reviews.

“We expect a deal on Wednesday,” said the former Deputy Energy Minister, indicating that the approval will lead to the immediate disbursement of the first tranche, totaling $600 million.

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Ghana is anticipated to receive the first tranche within a week after the Executive Board’s approval.

This development follows the substantial support extended to Ghana on Friday, May 12, by the Paris Club during its meeting co-chaired by China in Paris.

In a statement, the Paris Club acknowledged Ghana’s macroeconomic and financial situation, its long-term debt sustainability, and its formal request for debt treatment under the “Common Framework for Debt Treatments beyond the DSSI.” The committee expressed its support for Ghana’s anticipated IMF upper credit tranche (UCT) program and urged Multilateral Development Banks (MDBs) to maximize their assistance to meet Ghana’s long-term financial needs.

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President Nana Addo Dankwa Akufo-Addo expressed joy and referred to the approval by the Paris Club as the “last hurdle” during his meeting with the Ghana Catholic Bishops’ Conference at the Jubilee House.

“Today is a very special day in the recent history of Ghana. At long last today, we have been informed that the last hurdle towards our agreement with the [International Monetary] Fund has been overcome, which is that the Paris Club met today in Paris with the creditor’s committee co-chaired by China and has okayed and approved Ghana’s request of the IMF.”