Ghana is expecting to secure a US$1.15 billion funding from the International Monetary Fund (IMF) and the World Bank by the end of February as bilateral creditors near agreement on the terms of a debt restructuring.
The Finance Minister, Ken Ofori-Atta, expresses confidence in reaching an agreement with official creditors on the terms of a debt restructuring, with a meeting scheduled for 8 January, Bloomberg reported.
Once an agreement is reached, the IMF executive board can assess Ghana’s performance under the programme initiated in May, paving the way for the approval of a $600 million disbursement, the second part of its $3 billion bailout.
Despite some delays, Finance Minister Ofori-Atta expects the board to convene on 18 January. Approval by the board will also set in motion the release of two World Bank disbursements amounting to $550 million.
The World Bank has committed $300 million in budgetary support and another $250 million toward Ghana’s Financial Stability Fund, so “we are in good shape”, he said.
The disbursement for budgetary support is anticipated to occur by the end of this month, while the contribution to the fund, which aids financial institutions affected by the domestic debt restructuring, is expected to arrive by the end of February, according to Finance Minister Ofori-Atta.
In June, Ghana struck a deal with banks to restructure US$1.36 billion in locally issued US dollar bonds and cocoa bills to meet an International Monetary Fund (IMF) deadline and prioritise discussions with foreign creditors.
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