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Dr. Mohammed Amin Adam Anta, Minister of State for Finance, has stated that the first tranche of $600 million will be paid out as soon as the Executive Board of the International Monetary Fund (IMF) approves Ghana’s request for an extended credit facility (ECF).
The Karaga Member of Parliament (MP), in a phone conversation with Reuters on Sunday, May 14, said that a second installment of the same sum will be made before year’s end, with the remaining funds being distributed in equal installments of $360 million following semi-annual reviews.
The former deputy energy minister is cited as saying, “We expect a deal on Wednesday.”
“With the disbursement, there will be $600 million as a first tranche just after the approval,” the statement continued.
Within a week of the Executive Board’s approval, the nation is anticipated to receive the first tranche.
This change comes after the Paris Club’s significant assistance to Ghana on Friday, May 12.
It took place at a summit in Paris that China co-chaired.
“The creditor committee examined Ghana’s macroeconomic and financial situation, including its long-term debt sustainability, and its formal request for a debt treatment under the “Common Framework for Debt Treatments Beyond the DSSI” endorsed under the Saudi G20 Presidency in November 2020, which was also endorsed by the Paris Club,” the Paris Club said in a statement on Friday.
“The creditor committee supports Ghana’s proposed IMF upper credit tranche (UCT) program and the IMF Executive Board’s prompt acceptance of the program to meet Ghana’s urgent funding needs. In order to address Ghana’s long-term financial demands, the creditor committee encourages Multilateral Development Banks (MDBs) to support Ghana as much as possible.
President Nana Addo Dankwa Akufo-Addo was delighted with this and spoke highly of having overcome the “last hurdle” when he met with the Ghana Catholic Bishops’ Conference at Jubilee House.
“Today is a highly significant day in Ghana’s recent history. The Paris Club convened today in Paris with the creditor’s committee, which is co-chaired by China, and has accepted Ghana’s request to the IMF, which is the final hurdle that needs to be cleared before we can reach an agreement with the [International Monetary] Fund.
By Owusu-Boateng-Quansah|Locotvgh.com