Third tranche: IMF bailout package of US$360 million hits BoG's account

GhanaWeb Business has learned that the third tranche of Ghana's IMF bailout package, totaling $360 million, has been deposited into the Bank of Ghana's account.

Sources within the bank, speaking on the condition of anonymity, have confirmed the receipt of the bailout funds, which were credited into the Central Bank's account on Tuesday July 2, 2024.

The funds are intended to support activities related to the 2024 government budget and stabilize the Cedi.

On Friday, June 28, 2024, the IMF Executive Board approved Ghana's second review after the country completed all necessary requirements to access the funding.

This brings Ghana's total disbursements under the IMF-ECF arrangement to approximately US$1.6 billion since the initial approval in May 2023.

Prior to this, Ghana successfully reached an agreement in principle on the terms of debt restructuring with Eurobond investors, involving approximately $13 billion of debt. Eurobond holders have since agreed to a nominal principal haircut of 37%.

Additionally, creditors have the option to choose between two payment instruments, one offering an initial 5% interest rate and the other a 1.5% interest rate.

Finance Minister Dr. Mohammed Amin stated on July 1, 2024, that Ghana expects to receive the fourth tranche of the bailout funds in the fourth quarter of this year, pending approval from the IMF Executive Board on Ghana's third review of the ECF arrangement.

He also mentioned that the World Bank DP02 tranche of US$300 million is expected in the third quarter of 2024.

"Disbursements from bilateral institutions/financial institutions, including the World Bank GARID Project of US$150 million and the EBID facility of US$200 million for SME support, as well as anticipated proceeds from the 2024/2025 Cocobod syndication of up to US$1.5 billion, are expected in Q4 of 2024," Dr. Amin Adam said.

MA/NOQ

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