How soon can Ghana unlock next IMF disbursement?

Ghana is facing a challenging time in securing the release of the second tranche of $600 million under the IMF Extended Credit Facility as the Dean of the University of Cape Coast School of Business, John Gatsi, sheds light on the reasons behind the delay. The main sticking point seems to be the proposed 30-40 per cent haircut on principles, which Ghana's external creditors find difficult to accept. Gatsi emphasizes the need for a new proposal that will satisfy the creditors while also securing the much-needed financial support for the country. The uncertainty surrounding this disbursement has far-reaching implications for Ghana's economy, especially with crucial financial inflows expected in the last quarter of the year. The delay in securing the IMF disbursement has raised concerns about the stability of Ghana's currency, particularly as it heads into the festive season. Gatsi highlights the potential consequences of not receiving the expected funds, pointing out that the demand for foreign currency during Christmas could significantly impact the value of the Ghanaian Cedi. This underscores the urgency for Ghana to find a resolution that is acceptable to its external creditors to avert any economic instability. The government's communication regarding the delay in the disbursement has been met with skepticism, with critics questioning the reassurances provided by the Finance Ministry. While the Ministry maintains that negotiations are progressing smoothly, the perceived lack of clarity has added to the unease surrounding the situation. Gatsi suggests that the government needs to address these communication gaps to instill confidence in the public and prevent further speculation about the country's financial health. Looking ahead, Gatsi anticipates the outcomes of the upcoming Monetary Policy Committee meeting and emphasizes the importance of inflation targeting in shaping economic policies. He stresses the need for a reduction in policy rates to facilitate lower lending rates, thus creating a conducive environment for businesses to thrive. The outcome of the meeting will be closely watched as stakeholders await important decisions that could impact Ghana's economic landscape. In conclusion, as Ghana awaits the inflation numbers for October, Gatsi expects a marginal reduction that aligns with the overall downward trend in inflation rates. The hope is that this reduction will further support efforts to lower policy rates and lending rates, promoting economic growth and stability. Amidst these uncertainties, Ghana remains at a critical juncture in its financial negotiations, with key decisions expected to shape its economic trajectory in the coming months.