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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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IMF mission concludes 4th loan program assessment in Egypt

Published

4 hours ago

November 22, 2024

Ifeoluwa Dada

Following the completion of a recent visit to Egypt, the International Monetary Fund (IMF) has announced that its mission had achieved significant strides in policy talks aimed at concluding the fourth review of the IMF loan program.

The review is the fourth in Egypt’s most recent 46-month IMF loan program, which was authorised in 2022 and increased to $8 billion this year following an economic crisis characterised by high inflation and chronic foreign exchange shortages. It may unleash more than $1.2 billion in financing.

Along with reaffirming its commitment to maintain a flexible exchange rate system, the IMF stated that Egypt “has implemented key reforms to preserve macroeconomic stability,” including the unification of the currency rate that facilitated imports.

Earlier on Wednesday, Egypt’s Prime Minister Mostafa Madbouly said Cairo has asked the IMF to modify the targets for the programme not only for this year, but for its full duration, he added without giving more details.

“Discussions will continue over the coming days to finalize agreement on the remaining policies and reforms that could support the completion of the fourth review,” the IMF added in its statement.

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Kenya seeks $750m from World Bank, obtains $200m from AfDB— Official

Published

2 days ago

November 20, 2024

Ifeoluwa Dada

The head of debt management for the finance ministry told Reuters that Kenya had obtained a $200 million loan from the African Development Bank (AfDB) and was negotiating a fresh $750 million loan with the World Bank.

After being forced to abandon proposed tax rises costing more than 346 billion shillings ($2.68 billion) in June due to fatal demonstrations, the East African nation’s administration, which has been grappling with significant debt, has been frantically seeking fresh funding.

The Finance Ministry’s public debt management office director general, Raphael Owino, told Reuters that the IMF’s October clearance of the seventh and eighth reviews, which opened the door for a $606 million loan tranche, had aided the ministry’s talks for more loans.

“The World Bank is coming on board, riding on the back of IMF receipts,” Owino said. “The AfDB is already on board.”

The discussions for more assistance, which came under the World Bank’s “Development Policy Operations” (DPO) with the government, were confirmed by a representative at the organization’s Kenya office.

“The amount of the current (loan) is yet to be determined. The amount will also depend on the implementation of the policy reforms agreed upon,” the spokesperson told Reuters, adding that past DPO loans averaged about $750 million.

In May, the World Bank approved the latest round of DPO loans, totalling $1.2 billion.

According to a statement made last month by Finance Minister John Mbadi, Kenya has set a foreign borrowing goal of 168 billion shillings for the fiscal year ending in June 2025.