Second tranche of $3bn IMF cash in limbo – Ato Forson

The Minority in Parliament has alleged that there is a stalemate in Ghana’s negotiations for the second tranche of the $3 billion credit facility from the International Monetary Fund (IMF).

The Caucus maintains that there is a disagreement between the government and the International Creditors’ Committee regarding the cut-off point for the external debt required in the debt restructuring exercise to secure the next tranche of $600 million from the IMF.

The Minority Leader, Dr. Cassiel Ato Forson made the allegation in his concluding remarks on the 2024 budget debate in Parliament on Wednesday, November 29, 2023.

“Mr. Speaker, it will interest you to know that there is a deadlock in the negotiation between Ghana and the International Creditors Committee (ICC) made up of China and the Paris Club 50. There is a major disagreement on the cut-off point, regarding the external debt that must be excluded from the restructuring. Mr. Speaker, I do not need to sound the alarm that at this point, Ghana is between a rock and a hard place.”

“Ghana will need to decide either to accept the cut-off date as proposed by the International Creditors Committee and get the IMF Board to approve our USD600 million second tranche or refuse to accept.”

Dr. Forson explained that, if Ghana accepts the ICC cut-off point, it will mean that there will be more debt excluded from the debt restructuring, thus necessitating the immediate inclusion in the budget to service that debt.

“The moment we begin the servicing of our external debt, everything in this budget will change.”

Ghana had earlier secured a $3 billion bailout package from the International Monetary Fund to help salvage the ailing economy riddled with debt, high inflation and depreciating cedi.

The country has already received the first tranche of $600 million from the Bretton Woods Institutions.

The International Monetary Fund in October 2023 said it was waiting for the outcome of Ghana’s engagement with its bilateral creditors before releasing the next tranche of the $3 billion bailout package.