Ghana has reached an agreement with its Official Creditors, paving way for a second tranche of US$600 million from the International Monetary Fund (IMF).
The government’s agreement with Official Creditors under the G20 Common Framework on a comprehensive debt treatment beyond the Debt Service Suspension Initiative also opens the way for a $300 million World Bank support.
There will also be an additional $250 million from the World Bank for the Ghana Financial Stability Fund.
The development was disclosed in a press statement issued by the the Finance Ministry on Friday evening.
The statement said the agreement “constituted a significant positive step towards restoring long-term debt sustainability.”
“Today’s agreement with Official Creditors will support ongoing engagements with Ghana’s commercial creditors, including bondholders,” the statement noted.
Managing Director, IMF, Ms Kristalina Georgieva in a statement on Friday, reiterated government’s commitment on reaching an agreement with its commercial creditors as soon as possible.
The statement indicated government’s confidence of the US$600m in providing more financial resources in Ghana’s healthcare, education, and infrastructure development.
“This agreement clears the path for IMF Executive Board consideration of the first review of Ghana’s three-year Extended Credit Facility Arrangement in the next few days”.
“I look forward to continuing our fruitful collaboration with Ghana” she said.
The Director, Communications Department, IMF, Ms Julie Kovack, during a press briefing on Thursday, had pledged
the readiness of IMF Staff Mission to “rapidly” present Ghana’s first programme review before the Board once agreement was reached between Ghanaian Authorities and Official Creditors.