The International Monetary Fund (IMF) approved Ghana’s request for a US$3 billion bailout to support the debt-ridden West African nation’s economic recovery, according to people familiar with the matter.
The executive board of the International Monetary Fund met to discuss approval for the funding on Wednesday (17 May).
The country is seeking US$3 billion from the Fund to shore up its battered economy. On Friday, IMF managing director Kristalina Georgieva said Ghana’s official creditors had provided the necessary financing assurances for the IMF Executive Board to look at signing off on the loan.
Earlier, the Minister of State in the Finance Ministry, Mohammed Amin Adam had hinted that the IMF was likely to approve Ghana’s bailout by Wednesday (17 May).
“We expect a deal on Wednesday. With the disbursement, there is going to be US$600 million as a first tranche just immediately after the approval,” Adam said by phone, adding that Ghana hoped to receive the funds within a week of the board’s decision.
The funds will boost Ghana’s coffers and help it work towards the target of foreign reserves amounting to the equivalent of three months of imports by 2026, he said.