Ghana’s foreign reserves now total $5.7 billion thanks to $3 billion in IMF assistance – Governor Addison

The Governor of the Bank of Ghana (BoG) Dr Ernest Addison has revealed that Ghana’s international reserves have shot up to $5.7 billion with the $ 3 billion bailout approved for Ghana by the International Monetary Fund (IMF) and with the first tranche of $ 600 million already received.

Addressing the 112th Monetary Policy Committee (MPC) press conference in Accra on Monday, May 22, Dr Addison said “With the approval of the IMF-supported programme and receipt of the first tranche of the disbursement, the gross international reserves have increased to $5.7 billion as at Friday 19 May 2023 equivalent to 2.6 months of import cover.”

On Sunday, May 21, the Ministry of Finance confirmed that the first tranche of $600million of the $ 3 billion Extended Credit Facility (ECF) had been received by the BoG.

The cash, according to the Ministry, is to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth.

“The first tranche of $600million of Ghana’s low interest of $3billion Extended Credit Facility has been received to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth,” the Ministry tweeted on Saturday, May 20.

Finance Minister Ken Ofori-Atta earlier stated that the second tranche was expected to be received in the next 6 months.

Speaking at the IMF-Ghana joint press conference held in Washington on Thursday, May 18, he said “There is a 600million Dollars release, I am sure we can get it by tomorrow, and in the next 6 months it is going to be another 600million dollars and then we have about five different tranches in the periods forward to get to the $3billion.”
The IMF Mission Chief for Ghana Stéphane Roudet indicated that the $3 billion bailout would result in reforms in the energy and cocoa sectors.

Also, he said the programme would result in reforms to encourage private sector investments and also build international reserves.

“There will be reforms in the energy and cocoa sectors,” he said during a joint Ghana -IMF press conference.

“It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future,” he added.

The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May