The International Monetary Fund (IMF) has approved the second tranche of US$600 million for Ghana.

This was contained in a statement issued by the IMF on Friday, January 19, 2024.

“The Executive Board of the International Monetary Fund (IMF) completed today the First review of the $3 billion, 36-month Extended Credit Facility (ECF) Arrangement, which was approved by the Board on May, 17, 2023 , as well as the 2023 Article IV Consultation with Ghana. The completion of the first ECF review allows for an immediate disbursement of SDR 451.4 million (about US$600 million), bringing Ghana’s total disbursements under the arrangement to about US$1.2 billion,” portions of the statement read.

Ghana recently concluded negotiations with its bilateral lenders, including China and France, marking a pivotal moment that facilitated the release of the second tranche.

This achievement signifies Ghana’s successful completion of the first review under the Fund program, following the initial tranche received in May last year.

The government has announced its intention to allocate the newly approved $600 million to support various activities outlined in the 2024 budget, reflecting a strategic approach to utilizing the funds for economic development.

In a noteworthy move, Ghana has secured a moratorium with its official creditors, deferring debt payments until May 2026.

Additionally, reports suggest that the country is on track to finalize an agreement with Eurobond investors for the restructuring of a $13 billion debt by the end of March.

Finance Minister Ken Ofori-Atta has shared plans to fulfill $5.4 billion in bilateral obligations through two installments over 16 and 17 years, demonstrating a commitment to managing debt responsibly.

Expressing optimism, the Finance Minister had previously highlighted the country’s expectation of securing funding from the International Monetary Fund (IMF) based on the financial assurance provided under the G20 Common Framework.

In a related development, the World Bank has signaled its readiness to extend $300 million in budgetary support to Ghana, aiming to contribute to the country’s economic recovery.

The World Bank’s Board of Executive Directors is scheduled to convene next week to release this financial support, following the Official Creditors’ Committee’s agreement in principle on the major criteria of Ghana’s planned debt restructuring.

This collective support from international financial institutions reflects a collaborative effort to bolster Ghana’s economic resilience and stability.