Bank of Ghana Confirms Arrival of Second Tranche, US$600 Million, from IMF Deal

The Bank of Ghana (BOG) has officially received the second tranche of Ghana’s International Monetary Fund (IMF) bailout package, totaling US$600 million. This sum, designated for budget support and local currency stabilization, was credited to the Central Bank’s account on Tuesday, January 23, 2023.

With this disbursement, Ghana has now obtained a cumulative total of US$1.2 billion out of the approved $3 billion under the three-year extended credit facility sanctioned in May of the preceding year.

Distinct from the first tranche, which addressed Ghana’s balance of payment issues, the entirety of the second tranche is allocated for financing projects and programs outlined in the 2024 budget.

Following Ghana’s recent agreements with bilateral lenders, including China and France, the IMF approved the second tranche on Friday. The country’s positive performance under the program, marked by fruitful reforms and signs of economic stabilization, contributed to this decision.

The IMF’s next program review for Ghana is scheduled in six months, targeting the third tranche of US$720 million, assuming all conditions are met.

Additionally, the World Bank’s Executive Board is poised to provide $300 million in budget support for Ghana, unlocked by the second tranche. This follows the agreement in principle on the key parameters of Ghana’s debt restructuring under the G20 Common Framework. The World Bank’s disbursement aims to aid Ghana’s recovery, attract investments, and restore sustainable growth. A subsequent disbursement of $250 million to the Ghana Financial Stability Fund is anticipated to assist banks affected by the Domestic Debt Exchange Programme, pending approval after the Board meeting on January 23, 2023.