US$3 billion IMF deal: There will be no administrative charges – Joe Jackson

Ghana will not incur any administrative cost regarding the US$3 billion extended credit facility from the International Monetary Fund, financial analyst Joe Jackson has said.

The Director of Business Operations, Dalex Finance, told Klem Setumte on Class91.3FM’s ‘Talk of The Nation’ programme on Tuesday, 18 April 2023 that all the country would have to do is meet certain KPIs tied to each tranche of the money released by the Fund.

Once those conditions are met, Mr Jackson said Ghana will get the full US$3 billion though not at a go.

“First of all, the US$3 billion is the total amount over a period of time”, he pointed out, adding: “It doesn’t mean that as soon as the deal is signed, somebody writes a cheque to Ghana for US$3 billion. That’s not how it works”.

Mr Jackson, who said the May date for the finalisation of the deal, as given by Finance Minister Ken Ofori-Atta, was more practicable, said: “Even then, there will be some further conditions that will be front-loaded. So, we’ll get some money signifying that a deal has been done. It will not be all the money; it may not even be half the money but as we meet the KPIs, we get some more of the money until we hit US$3 billion”.

“It will be coming in tranches and each tranche will be tied to meeting a certain performance indicator”, he indicated.

Asked directly if there will be any administrative charges tied to the US$3 billion, Mr Jackson answered: “Not really. This is from the IMF. It is not a commercial debt where there are administrative costs, etc., no”.

“This is from the IMF and there will be no ‘administrative cost’. What there will be is what you have to do to make sure you get the money,” he clarified.

Watch the latest edition of BizTech and Biz Headlines below: