An Economist, Dr Theo Acheampong has emphasised how crucial it is for Ghana to meet the target of the first $600 million tranche of the $3 billion IMF programme.
According to him, should Ghana fail to meet the target, it will become difficult for the country to receive the remaining tranche of the loan that is needed.
Dr Acheampong also emphasised that the possibility of Ghana getting funding from other developmental partners will be at stake if the target is not met.
“Any other funding that we’re going to be getting, whether from the IMF, whether from the World Bank or other development partners, is all contingent on us meeting the program targets. That will be very important.
“So when the next review is done in a couple of months, if you look at the document and the targets at the end of the year, if we have not met most of those core quantitative and benchmark reform targets, then it becomes difficult to get those additional tranches of money coming in, in that regard,” the economist explained while speaking on Newsfile on Saturday.
The IMF, in a press release issued on Wednesday, May 17 indicated that its Executive Board has approved a $3 billion Extended Credit Facility (ECF)—a three-year loan programme arrangement for Ghana.
They further stated that the decision of the board was to enable an immediate disbursement of about $600 million to Ghana.
This amount was credited to the account of the Bank of Ghana on Friday, May 19.
The second tranche of disbursement, another $600 million, is expected in December 2023. The remaining amount is to be paid out in instalments of $360 million every six months, subject to meeting the IMF programme conditions.
The Finance Minister, Ken Ofori-Atta indicated in a tweet that the funds will be utilised for budget support and to help reduce inflation.
Following this, Dr Acheampong further stated that the initial payment is intended to serve as a stopgap measure to stabilise the country’s economy.