Will Ghana meet conditions for IMF third tranche?

Ghana is on the brink of receiving another 360-million-dollar bailout from the International Monetary Fund (IMF) as the Board is set to meet on the 2nd of December to discuss the country's Third Programme Review. The Finance Minister, Mohammed Amin Adam, expressed optimism about Ghana meeting the criteria to unlock this additional funding. Karen Kwarteng, the Head of Global Market Sales at Standard Bank, also shared positive sentiments about Ghana's economic progress so far under the Extended Credit Facility Programme. She highlighted Ghana's successful debt restructuring program and timely disbursements from the IMF throughout the reviews. Kwarteng confidently stated that Ghana has fulfilled all requirements and is well-positioned to receive the IMF's fourth tranche. The anticipated disbursement is expected to support Ghana's budget and balance of payment needs. Discussing Ghana's foreign exchange reserves, Kwarteng addressed concerns raised about the state of reserves ahead of the festive season, when demand for the dollar is expected to rise. She mentioned the Bank of Ghana's robust reserves of 7.5 billion US dollars at the end of August, stating that the addition of the IMF's funding and an expected 300 million from the World Bank would further strengthen the reserves. Kwarteng reassured businesses that the central bank's liquidity injections and market interventions were sufficient to maintain stability. She also touched on the COCO board syndicated loan of 1.5 billion US dollars, noting a shift in funding structure to source directly from licensed buying companies, which she deemed successful thus far in mitigating delays and supporting Ghana's reserves. Further addressing concerns about the Ghanaian cedi's depreciation, Kwarteng explained Ghana's commitment under the IMF program to limit foreign exchange interventions to build external reserves. She emphasized that Ghana had met reserve requirements, allowing for market interventions when necessary. Kwarteng praised the government's supervision efforts in ensuring banks' compliance with financial regulations and revising documentation for business transactions. These measures, along with liquidity injections, contributed to the cedi's stability amidst monthly import bills averaging $4 billion. As Ghana anticipates the IMF's approval of the third tranche, stakeholders are optimistic about the country's economic prospects. The continued implementation of sound economic policies and reforms has positioned Ghana as a favorable investment destination. With a focus on maintaining fiscal discipline, strengthening reserves, and enhancing market supervision, Ghana aims to navigate challenges and sustain economic growth. The upcoming disbursement from the IMF and other funding sources is poised to bolster Ghana's financial stability and support ongoing development initiatives.