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Ghana to get first instalment of its IMF bailout by the first quarter of 2023.

In the first quarter of 2023, Ghana will receive the first tranche of roughly $3 billion from the International Monetary Fund (IMF), according to the Finance Minister, Ken Ofori-Atta.

Key fiscal initiatives, structural changes, and the medium-term macro-fiscal framework included in the 2023 Budget, according to the Minister, are in line with the IMF-supported Programme.

A staff-level agreement on economic policies and reforms has been reached by Ghana, and it will be supported by a three-year arrangement under the Extended Credit Facility.

Before the IMF board and management would approve the first tranche, further work must be done, according to the Minister, who also noted that the SLA is only one part of the approval procedure.

In light of this, he urged all parties, particularly Parliament, to guarantee that the 2023 budget and other revenue-related measures are approved by the house.

When asked about the timing of the first tranche at a news conference with IMF officials on December 13, 2022 in Accra, the finance minister responded, “Ghana stands ready to fulfil all the earlier activities before the first quarter of 2023. We are dedicated to completing the programme as a whole, and we will do our bit to achieve so.

“More is yet to be done to secure IMF board and management’s approval and that is what we all as Ghanaians should ensure that it goes through. Its therefore crucial we receive support from all stakeholders, especially Parliament to ensure that the 2023 budget and including all revenue measures are passed”.

Mr. Ofori-Atta urged Ghanaians to exercise restraint and be disciplined as the government waits for the IMF’s Board’s approval.

“We hope that Ghanaians will continue to support all efforts to restore macroeconomic stability and promote robust and inclusive growth. We are confident as a resilient people, and we shall rally to this great enterprise, to restore macroeconomic stability and promote robust and inclusive growth.

The world is looking at us, and I know we can do it. To God indeed be the glory for the great thing he hath done
within 5 months.  Let us continue with courage, the spirit of love for each other and self-discipline to go through this together,” the Finance Minister said.

The Finance Minister added that the whole programme will be successful if the government gets commitment from its creditors.

“We can only get to the IMF Board if we get sufficient commitment from our creditors in support of the debt operation. i. The 2023 Budget is anchored on increasing domestic revenue mobilization effort by 1.2 percentage points of GDP. On the expenditure side, the 2023 Budget proposes to reduce expenditures (on commitment basis) by about 2 percentage points of GDP from 2022 to 2023. Primary expenditures are expected to be reduced through a reduction in allocation on the Use of Good and Services and Domestically Financed Capital expenditure on a commitment basis,” the Finance Minister said.

This, the Finance Minister said, “These fiscal adjustments alone are not enough to address the country’s economic challenges, hence the ongoing debt restructuring aimed at restoring debt sustainability in the medium-term”.

On his part, the IMF Mission Chief for Ghana, Stephan Roudet said, “We have been engaging very closely with Ghana and I’m extremely pleased to announce that the IMF has reached the staff agreements with Ghana”.

Disclaimer: The opinions expressed in this publication do not in anyway reflect the opinions of State News Ghana

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