Governor of the Bank of Ghana (BoG), Dr Ernest Addison, has disclosed that the first tranche of $600 million from the International Monetary Fund’s $3 billion loan, will hit the bank’s account on May 19, 2023.
Dr Addison’s made this comment at the IMF and the Finance Ministry’s joint press conference on Thursday, May 18.
He said “Just for your information, we have had swift advice, today to receive the money. Value date tomorrow $604 million.”
On May 17, the IMF finally approved Ghana’s Programme request seeking for a $3 billion Balance of Payment support to stabilise the economy.
The IMF released a 126-page press statement giving more details about the deal.
This approval of the deal comes after the IMF in a statement said the government of Ghana has put in place a strategy to tighten expenditure controls and prevent arrears’ build-up.
According to the Fund, public procurement will be fully integrated with the Ghana Integrated Financial Management Information (GIFMIS) to ensure that only projects that benefit from approved budgets and quarterly allotments can obtain procurement approvals to award contracts.
Speaking at the same joint press conference, the Finance Minister, Ken Ofori-Attah assured the public that social intervention programmes such as the Livelihood Empowerment Against Poverty (LEAP) and the Free Senior High School (SHS) will not be negatively affected by the US$3 Billion International Monetary Fund (IMF) Bailout.
According to Mr Ofori-Atta, there will be no cuts in these programmes as social protection is one of the prominent considerations of the deal.
“The issue of ensuring that we protect the vulnerable is very clear in the programme. We have increased the resource envelope for the School Feeding Programme. We are doubling the LEAP programme to ensure that welfare support continues.
“So we should not worry about it. You have always heard the president being clear about ensuring the protection of lives and livelihood, and that spirit will continue,” the Finance Minister said.
Adding to Mr Ofori-Attah’s assurance, the International Monetary Fund (IMF) Mission Chief for Ghana, Stéphane Roudet, stressed the Fund’s commitment to protecting the vulnerable.
“Ensuring adequate social protection is a key objective of the programme, and the 2023 budget has already taken steps in this regard.”
Before the approval, Ghana had to embark on several measures, including the Domestic Debt Exchange Programme (DDEP), tax increment, and some expenditure cuts.
