27th November 2023 3:02:12 PM
3 mins readGovernor of the Bank of Ghana (BoG), Dr. Ernest Addison, has expressed expectations that the board of the International Monetary Fund (IMF) will convene before the year concludes to deliberate on the release of the second tranche of the $3 billion fund.
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This comes in the wake of the successful review of the initial $600 million tranche. Dr. Addison shared this information during the Q&A session at the 115th Monetary Policy Committee (MPC) press conference held in Accra on Monday, November 27.
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He said “We expect the IMF board meeting to take place before the end of the year, which should also trigger another disbursement of foreign exchange.”
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During the presentation of the 2024 budget statement to Parliament on November 15, Finance Minister Ken Ofori-Atta highlighted that Ghana achieved all six Quantitative Performance Criteria (QPCs) in the first review of the IMF-supported Post-COVID-19 Programme for Economic Growth (PC-PEG).
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The Minister explained that the program undergoes semi-annual assessments by the IMF, involving a staff review mission followed by approval from the IMF Executive Board.
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Disbursements under the program are contingent on the successful completion of each review. The initial review involved an IMF mission assessing Ghana's progress from September 25 to October 6, 2023.
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This review covered the assessment of:
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i. six (6) Quantitative Performance Criteria (PCs);ii. one (1) Monetary Policy Consultation Clause (MPCC) for inflation;iii. three (3) Indicative Targets (ITs); andiv. nine (7) Structural Reform Benchmarks (SBs) that were due at the end of September 2023.
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“I am glad to inform this august house that based on the IMF's own assessment (at the staff level) after the first review, Ghana met All six (6) of the Quantitative Performance Criteria (QPCs). The QPCs are a floor on net international reserves, ceiling on primary balance on commitment basis, ceiling on contracting non-concessional loan/guarantee, zero collateralized borrowing, and no accumulation of external debt service arrears.
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“Two (2) out of the 3 Indicative Targets. The two ITs met are a floor on social spending and a floor on non-oil public revenue. The IT on zero net accumulation of payables was extended largely due to the ongoing negotiations with Energy Sector IPP on legacy debt; .
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“Six (6) out of the seven (7) Structural Benchmarks due end-September 2023. The six SBs met are (a) preparation and publication of arrears clearance and prevention strategy, (b) preparation and publication of financial sector strengthening strategy, (c) preparation and publication a strategy for review of earmarked (statutory) funds, (d) preparation andpublication of a medium-term revenue strategy, (e) a strategy for indexation of LEAP benefits and (f) BoG to approve capital building buffer plans for banks. The seventh SB on the preparation and publication of an updated Energy Sector Recovery Plan which was expected to be completed at the end of June 2023 was strategically completed andpublished on the MoF website in October 2023.
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“Mr. Speaker, the outstanding performance of Ghana during the first (1st) review paved the way for Ghana to reach a Staff Level Agreement (SLA) with IMF on the 6th October 2023, a record five (5) months after the Programme was approved in May 2023.”
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