The Minority in Parliament is predicting the earliest Ghana is likely to receive its expected $360m disbursement from the International Monetary Fund (IMF) is the first week of July.
The country is yet to secure an IMF board level approval to unlock the 3rd tranche, $360m of its $3bn 3-year Extended Credit Facility (ECF), although it reached staff level agreement on its second review in March 2024.
Having received a total of $1.2bn in two $600m tranches in May 2023 and January 2024, the country’s inability to make significant progress in reaching a Memorandum of Understanding (MoU) with its external creditors remains a stumbling block in assessing its much-needed next inflow.
With the local currency, spiraling fast against other international trading currencies, the IMF disbursement forms part of some inflows of about $1.2bn, Finance Minister, Dr. Mohammed Amin Adam in April said was expected to help stabilize the rapidly depreciating currency.
But the Minority Leader, Dr. Cassiel Ato Forson assert disbursement may not happen until July.
“There has been some form of understanding that they will forgive X% of that debt. What IMF is asking from these official creditors committee is that they should get them at an MOU pending signature. If they are to see the MOU somewhere around June ending then they will be able to go to their board. The earliest Ghana can get that tranche coming in will be first week of July.”, he told journalists at a press conference.
The former deputy finance minister adds the potential delay paints a gloomy picture for the cedi in the coming weeks.
“360 million dollars coming in July. From now to July, what will happen to our free fall of the cedi? The cedi can only continue to depreciate.”, he passed as his verdict.
The Ghana Cedi per official data from the Bank of Ghana had depreciated by 13.9% as at the close of May 17 on the interbank market, rising from a midrate of 11.88ghc to the dollar on Jan 2 to 13.80ghc to the dollar.