Ghana gets green light for second tranche of $600m IMF loan

Ghana has gained assurances from its Official Creditors, paving the way for a second tranche $600 million loan from the International Monetary Fund (IMF).
The government’s agreement with Official Creditors under the G20 Common Framework on a comprehensive debt treatment beyond the Debt Service Suspension Initiative also opens the way for a $300 million World Bank support.
There will also be an additional $250 million from the World Bank for the Ghana Financial Stability Fund.
Announcing the development in a press statement Friday evening, the Finance Ministry said the agreement “constitutes a significant positive step towards restoring Ghana’s long-term debt sustainability”.
“Today’s agreement with Official Creditors will support ongoing engagements with Ghana’s commercial creditors, including bondholders,” the statement noted.
The statement reiterated government’s commitment to reaching an agreement with its commercial creditors as soon as possible.
It expressed appreciation to all stakeholders for the feat chalked.
The statement indicated government’s confidence of the $600 million providing more financial resources for the country’s healthcare, education, and infrastructure development.
“This agreement clears the path for IMF Executive Board consideration of the first review of Ghana’s three-year Extended Credit Facility Arrangement in the next few days,” said Ms Kristalina Georgieva, Managing Director, IMF.
“I look forward to continuing our fruitful collaboration with Ghana,” the IMF MD said in a statement on Friday.