Ofori-Atta outlines key milestones achieved towards securing IMF deal

The Minister of Finance, Ken Ofori-Atta, has outlined the key milestones the government chalked as a result of its decision to secure the $3 billion deal from the International Monetary Fund.

He noted that the path was saddled by speed and resoluteness, resulting in its timely success.

Whiles presenting the mid-year budget review on July 31, 2023, he said “Mr. Speaker, it is instructive to note that our path toward securing an approved IMF-supported Programme has been characterized by speed and resoluteness. More specifically, the following key and significant milestones were accomplished.”

The milestones include:

i. Achieved Staff Level Agreement (SLA) in December 2022, 6 months after we formally requested the IMF’s support to back our PC-PEG;

ii. were supported by China’s agreement to co-chair Ghana’s Paris Club Official Creditor Committee (OCC);

iii. secured financing assurances from the OCC, co-chaired by China and France, on 12th May 2023, 5 months after our formal request in December 2022;

iv. secured an IMF Board approval on 17th May 2023, 5 months after the SLA and 10 months after our formal request for a Fund Programme;

v. secured US$3bn IMF financing equivalent to three times Ghana’s quota;

vi. front-loaded disbursement of IMF resources with 40 percent in 2023 and the rest spread between 2024-2026; and

vii. successfully concluded a domestic debt exchange programme.

viii. The results are clear. We are witnessing the catalytic impact of crowding in other resources-

• we are in discussions with the World Bank for a $900 million Development Policy Operation;

• the United States, through the International Development Finance Corporation, has announced a programme to invest US$300 million towards the construction of a Data Centre under the G7 Partnership for Global Infrastructure and Investment (PGII).

The presentation of the mid-year budget review statement is in accordance with the provisions of the Public Financial Management Act 2016 which mandates the Minister of Finance to present the mid-year review of the budget statement on the Economic Policy of the Government of Ghana for the fiscal year.

It aims to provide a platform for government to update the House and citizens on its economic progress as well as outline any necessary adjustments to the budgetary allocations and policies.

SSD/NOQ