Ghana is improving and regaining strength – Ahiagbah

The Director of Communications of the New Patriotic Party (NPP) Mr Richard Ahiagbah has called on Ghanaians to support the government to turn the economy around.

He says the government is building back the economy stronger and better.

Reacting to reports that the International Monetary Find (IMF) is likely to approve Ghana’s 3.5billion bailout on WednesdayMay 17, he said “It is all clear, and the IMF is likely to approve Ghana’s extended credit facility (ECF) application as soon as this month. But please note that the conditions requiring this ECF application were brought on almost exclusively by the twin factors of covid-19 and the war in Ukraine, unlike the 2015 ECF application which was 95% a function of internal mismanagement of the economy. Ghana is building back stronger and better! Support NPP to deliver for Ghana.”

Earlier the Minister of State at the Finance Ministry, Dr Mohammed Amin Adam Anta confirmed that the first tranche of $600 million would be disbursed immediately after the Executive Board of the IMF approves Ghana’s request for an ECF.

Confirming to Reuters in a phone interview on Sunday, May 14, the Karaga Member of Parliament (MP) said a second tranche of the same amount will drop by end of year with the rest disbursed in equal tranches of $360 million after semi-annual reviews.

“We expect a deal on Wednesday,” the former Deputy Energy Minister is quoted as saying.

“With the disbursement, there is going to be $600 million as a first tranche just immediately after the approval.”

The first tranche is expected to be received by the country within a week after the Executive Board’s approval.

This development follows the massive support given to Ghana on Friday, May 12 by the Paris Club.

It was at its meeting co-chaired by China in Paris.

“The creditor committee examined the macroeconomic and financial situation of Ghana, including its long-term debt sustainability, and its formal request for a debt treatment under the ‘Common Framework for Debt Treatments beyond the DSSI’ endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club,” the Paris Club said in a statement on Friday.

“The creditor committee supports Ghana’s envisaged IMF upper credit tranche (UCT) program and its swift adoption by the IMF Executive Board to address Ghana’s urgent financing needs. The creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs.”

This brought joy to President Nana Addo Dankwa Akufo-Addo, who talked highly of the “last hurdle” crossed when he met the Ghana Catholic Bishops’ Conference at the Jubilee House.

“Today is a very special day in the recent history of Ghana. At long last today, we have been informed that the last hurdle towards our agreement with the [International Monetary] Fund has been overcome, which is that the Paris Club met today in Paris with the creditor’s committee co-chaired by China and has okayed and approved Ghana’s request of the IMF.”