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Ghana expects $600 million IMF loan this week

Published

2 years ago

May 15, 2023

Ghana’s Finance Ministry expects the International Monetary Fund (IMF) to approve the disbursement of the first tranche of $600 million loan this week.

The Minister of State in the Ministry, Mohammed Amin Adam told journalists that the disbursement is expected from Wednesday as the country seeks $3 billion from the Fund to augment its battered economy.

“We expect a deal on Wednesday. With the disbursement, there is going to be $600 million as a first tranche just immediately after the approval,” Adam said

A second $600 million tranche is anticipated to be granted following a positive first evaluation of the program, which is expected to take place in November or December, with the remaining funds being distributed in equal instalments of $360 million following semi-annual reviews, he added.

“Confidence is going to be restored and we expect that stakeholders will cooperate and will be encouraged to negotiate favourable terms with us,” he said, adding that the date for talks had not yet been set for either group.

He further revealed that negotiation for debt restructuring has reached advanced stages with the World Bank for additional support of $900 million to be disbursed in three equal instalments of $300 million over three years.

“We are far advanced, almost concluding negotiations,” he said.

Another international lender, Paris Club at the weekend announced that official sector creditors of Ghana have formed a committee co-chaired by China and France for debt restructuring talks.

Ghana is one of many poor nations that are experiencing unheard-of delays in receiving bailouts. With a debt of around $1.7 billion, China is Ghana’s largest bilateral creditor, but China and Western creditors are not on the same page over the best way to handle debt relief.

Related Topics:Debt restructuring Featured Ghana IMF

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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”