The Bank of Ghana (BOG) has confirmed the receipt of the second tranche of the bailout package with the International Monetary Fund (IMF), amounting to US$600 million. This funding, designated for budget support and the stabilization of the local currency, was officially credited to the Central Bank’s account on Tuesday, January 23, 2023.
With the arrival of the second tranche, Ghana has now received a total of US$1.2 billion out of the approved $3 billion under the three-year extended credit facility, sanctioned in May of the previous year. Unlike the first tranche, which was allocated to address Ghana’s balance of payment issues, the entirety of the second tranche will be utilized to finance projects and programs outlined in the 2024 budget.
The approval of the second tranche by the IMF last Friday followed Ghana’s successful negotiation with bilateral lenders, including China and France, marking a crucial step that triggered the disbursement. The IMF noted that Ghana has performed well under the program, with implemented reforms yielding positive results and indications of economic stabilization.
This disbursement has also paved the way for additional funding from other international donors. The World Bank’s Executive Board is expected to provide $300 million in budget support for Ghana, following an agreement in principle on the proposed debt restructuring reached by the Official Creditors’ Committee under the G20 Common Framework.
The disbursement is anticipated to contribute to Ghana’s economic recovery, attract investments, restore sustainable growth, and aid in the country’s debt sustainability. After the necessary approval from the board, it is expected to take a few days for the amount to be drawn down. Additionally, the World Bank is slated to disburse $250 million to Ghana as part of its contribution to the Ghana Financial Stability Fund, designed to assist banks impacted by the Domestic Debt Exchange Programme.
