Ghana’s IMF Board approval: experts doubt approval timeline of May 17
Some economists and financial experts are questioning the timeline regarding the approval of the International Monetary Fund (IMF) support programme and the arrival of the first tranche of the $3 billion Balance of Payment support for Ghana.
According to them, it may take a while to complete relevant processes before the IMF Board approves a financing agreement for a member country after receiving all relevant financing assurances.
This is contrary to some statements from government quarters suggesting that Ghana may receive a board approval by Wednesday, May, 17 2023
But the Director of Research at the Institute of Economic Affairs, Dr. John Kwakye, thinks otherwise, saying, his checks with the IMF Board Meeting Schedule indicate that Ghana is not on the agenda of the IMF Board for this week and even next week.
He is therefore challenging policy makers to share the IMF Board Meeting Schedule if they have.
In a tweet, Dr. Kwakye, who once worked with the IMF in Washington DC, USA, said, “My checks on IMF Board Meeting Schedule for the coming week shows the following: May 17, Benin; May 22, Indonesia; May 24, Cote d’lvoire; May 25, Mali. So where is Ghana? Unless someone is seeing a difference schedule. Please share it if you have”.
Bright Simons, Vice President of Imani Africa, also said it takes between two weeks and one month to finalise the country’s document and subsequently submitted to the board for approval.
“Usually after receiving all relevant financing assurances (where this is a precondition for a programme), it takes between two weeks and one month to finalise the country dossier and submit to the board for approval. Ghana says No, it wants all that done TOMORROW! Country”.
He added that “the IMF’s historical risk-based tranche disbursement model shows that immediate realise upon approval of the Ghana ECF deal in coming weeks should be between $300 million to $450 million. But Ghana has made it clear that it won’t settle for anything less than $600 million. And it wants all of it NOW.”
Ghana ready to go to IMF Board – Finance Ministry
The Finance Ministry had earlier indicated that Ghana was now ready to go to the Board of the International Monetary Fund for approval of a programme.
This follows the Financing Assurance to Ghana Creditor Committee under the G20 Common Framework.
The creditor committee stressed 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, in line with the comparability of treatment principle.
In a tweet, the Finance Ministry said “The Paris Club has today established the OCC (co-chaired by China & France). With the granting of Financing Assurances, Ghana is now ready to go to the IMF Board. Thank you to all our bilateral partners for helping us reach this significant milestone!”
Source: Ghana News
