IMF bailout: Immediate release to Ghana should be between $300m to $450m – Bright Simons

Vice President of Imani Africa Bright Simons has said that Ghana will likely get between $ 300 million and $450 million immediately released.

But he says Ghaha wants all the $600million which is the first tranche of the $3billion expected to be released by the Fund,

“The IMF’s historical risk-based tranche disbursement model shows that ‘immediate release’ upon approval of Ghana extended credit facility (ECF) deal in coming weeks should be between $300m to $450m.

“But Ghana has made it clear that it won’t settle for anything less than $600m. And it wants all of it now,” he tweeted.

The Minister of State at the Finance Ministry, Dr Mohammed Amin Adam Anta, earlier indicated that the first tranche of $600 million would be disbursed immediately after the Executive Board of the Fund approves Ghana’s request for the ECF.

Confirming to Reuters in a phone interview on Sunday, May 14, the Karaga Member of Parliament (MP) said a second tranche of the same amount will drop by end of year with the rest disbursed in equal tranches of $360 million after semi-annual reviews.

“We expect a deal on Wednesday,” the former Deputy Energy Minister is quoted as saying.

“With the disbursement, there is going to be $600 million as a first tranche just immediately after the approval.”

This development followed the massive support given to Ghana on Friday, May 12 by the Paris Club.

It was at its meeting co-chaired by China in Paris.

“The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the ‘Common Framework for Debt Treatments beyond the DSSI’ endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club,” the Paris Club said in a statement on Friday.

“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs.”

This brought joy to President Nana Addo Dankwa Akufo-Addo, who talked highly of the “last hurdle” crossed when he met 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.”