Ghana is on track to receive a financial boost of $1.15 billion from the International Monetary Fund (IMF) and the World Bank by the end of February.
Finance Minister Ken Ofori-Atta expressed his confidence in the progress of negotiations, noting that official creditors are nearing an agreement on the terms of the debt restructuring.
The culmination of this agreement is expected to take place in a crucial meeting scheduled for January 8.
The anticipated agreement will pave the way for the IMF executive board to convene and assess Ghana’s performance under the bailout program initiated in May.
Following the board’s review, a disbursement of $600 million, constituting the second tranche of the $3 billion bailout, is expected.
Despite some delays, Ofori-Atta mentioned that the board is likely to convene on January 18.
The impending board approval also acts as a catalyst for two disbursements from the World Bank, amounting to $550 million.
Of this, $300 million is allocated for budgetary support, while an additional $250 million is earmarked for Ghana’s Financial Stability Fund.
Ofori-Atta detailed that the budgetary support disbursement is anticipated by the end of January, while the contribution to the Financial Stability Fund, designed to provide liquidity to institutions affected by domestic debt restructuring, is expected by the end of February.
This financial injection is poised to play a crucial role in supporting Ghana’s economic recovery and stability, demonstrating the collaborative efforts between the government and international financial institutions to navigate through challenging fiscal situations.