Ghana faces a major risk as its US$360 million tranche from the International Monetary Fund (IMF) will not be able to settle the US$477 million debt it has agreed with the Eurobond holders, Minority Leader in Parliament, Dr. Cassiel Ato Baah Forson, has noted.
The former Deputy Finance Minister under the erstwhile Mahama administration says government, instead of relying on the IMF money to service its debts, should have built buffers in anticipation of the payments.
In a post made on X Wednesday, July 03, 2024, the Ajumako Enyan Essiam Member of Parliament noted the failure of the government to secure some protective barriers posses risk to the economy.
He called on the citizenry to brace up for the impact it is going to have on the local currency whose depreciation has been on the ascendancy.
“The IMF’s USD 360m that has just been paid to the government of Ghana is NOT enough to service the initial debt of USD 477m that the government of Ghana has agreed with EuroBond holders.
“It is obvious that the failure on the part of the Government of Ghana to build buffers in anticipation of such payments will now become a major risk to the Ghanaian economy. This means a lot for the Ghana Cedi,” he posted
Folks
The IMF's USD 360m that has just been paid to the government of Ghana is NOT enough to service the initial debt of USD 477m that the government of Ghana has agreed with EuroBond holders.
It is obvious that the failure on the part of the Government of Ghana to build…
— Cassiel Ato Forson(PhD) (@Cassielforson) July 3, 2024
On Tuesday, July 02, 2024, government received US$360 million as the third tranche of Ghana’s bailout package with the Bretton Wood Institution.
The cash, meant for budget support and stabilization of the local currency followed the Executive Board’s approval of the second review last Friday, June 28, 2024.
This makes it a total of US$1.56 billion out of the US$3 billion approved under the three-year extended credit facility.
The fourth tranche of another US$360 million is expected in quarter four of 2024 after the IMF Executive Board approves the third review.
