$3bn IMF deal: Ghana risks losing the other tranches if the first $600m isn’t utilized well – Jantuah
A private legal practitioner Mr Kwame Jantuah has said the government needs to utilize the $ 600 million first tranche of the $3 billion according to the terms and conditions of the International Monetary Fund (IMF) bailout programme.
Otherwise, he said, the country would risk losing the other tranches.
Speaking on the Big Issue on TV3 Friday May 19, Mr Jantuah who is also a member of the Convention Peols Party (CPP) said: “if we do not handle this $600million first tranche well the rest of the $3 billion won’t come in.”
The $ 600 million first tranche is expected to hit the accounts of the Bank of Ghana (BoG) today Friday, May 19.
The Governor of the BoG Dr Ernest Addison announced that the central bank had already received an advisory notification on that already.
Speaking at the IMF-Ghana joint press conference held in Washington on Thursday, May 18, Dr Addison joined virtually from Accra said “Just for your information we have had swift advisory today, [Thursday] to receive the money by tomorrow [Friday], 600million US Dollar”
Finance Minister Ken Ofori-Atta for his part said the second tranche is expected to be received in the next 6 months.
“There is a 600million Dollars release, I am sure we can get it by tomorrow, and in the next 6 months it is going to be another 600million dollars and then we have about five different tranches in the periods forward to get to the 3bn,” he said.
The IMF Mission Chief for Ghana Stéphane Roudet indicated that the $3 billion bailout will result in reforms in the energy and cocoa sectors.
Also, he said the programme will result in reforms to encourage private sector investments and also build international reserves.
“There will be reforms in the energy and cocoa sectors,” he said during a joint Ghana -IMF press conference.
“It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future,” he added.
For his part, Finance Minister Ken Ofori-Atta thanked the Fund for the support.
He said “We are already seeing relative stability in the currency and inflation and revitalizing our economy. Government with support from the IMF and collective effort with Ghanaians will work through our current challenges and emerge stronger.”
The Board of the Fund unanimously approved Ghana’s bailout on Wednesday, May 17 at a meeting in Washington after Ghana secured the Paris Club financing assurance on Friday, May 12.