UPDATE: IMF Grants Ghana $3 Billion Credit Facility

Ghana’s $ 3 billion bailout was approved unanimously by the International Monetary Fund’s Executive Board during a meeting on May 17 in Washington.

On Friday, May 12th, 2023, Ghana received the finance guarantee from the Paris Club. According to a press release issued by the Paris Club on May 12th, “The creditor committee stresses that the Ghanaian authorities are expected to seek from all private creditors and other official bilateral creditors debt treatments on terms at least as favourable as those being considered by the creditor committee,” which is in line with the comparability of treatment principle.

Because of this, it was further stated that “the creditor committee urges private creditors and other official bilateral creditors to commit without delay to negotiate with Ghana such debt treatments that are crucial to ensure the full effectiveness of the debt treatment for Ghana under the Common Framework.” Creditor countries for Ghana have also organized a committee to expedite the resolution’s implementation. China and France are likely to share leadership of the creditor committee.

Ghana’s formal request for a debt treatment under the “Common Framework for Debt Treatments beyond the DSSI” endorsed under the Saudi G20 Presidency in November 2020 and also endorsed by the Paris Club was thoroughly reviewed by the creditor committee. To meet Ghana’s urgent funding needs, the creditor committee backs the IMF upper credit tranche (UCT) program that has been proposed for the country.

In addition, “the creditor committee encourages Multilateral Development Banks (MDBs) to maximize their support for Ghana to meet its long-term financial needs,” the statement reads.

On Thursday, May 18, the Fund will release information about payments made to Ghana.

An IMF press conference “to brief journalists on the outcomes of IMF Executive Board meeting on Ghana’s request for an Extended Credit Facility Arrangement, which will take place on Wednesday, May 17,” according to a media alert released by the organization on Wednesday. This press conference will take place virtually on Thursday from Washington, DC.

IMF Mission Chief for Ghana Stephane Roudet will hold a press conference with the country’s Minister of Finance Ken Ofori-Atta and Central Bank Governor Dr. Ernest Kwamina Yedu Addison. Tatiana Mossot, the IMF’s senior communications officer, will be in charge of organizing the news conference.