Dr. Mohammed Amin Adam, Ghana’s Finance Minister, has revealed to the Ghana News Agency that the country is poised to sign a Memorandum of Understanding (MoU) with its official bilateral creditors next week.
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Speaking exclusively to the Ghana News Agency, Dr. Adam disclosed that Ghana had fulfilled all prerequisites for the second review to proceed to the IMF Board in June. He stated, “We’re waiting for the draft next week to sign.”
The announcement was made on the sidelines of the launch of the 2025 Africa Prosperity Dialogues in Accra.
The signing of the MoU holds significant importance for Ghana as it awaits the disbursement of its third tranche, amounting to US$360 million, from the International Monetary Fund (IMF). This follows Ghana’s achievement of a Staff Level Agreement with the Fund’s Mission Team in April this year.
The move is part of the government’s efforts to restructure its external debt of approximately US$13 billion to ensure compliance with debt sustainability parameters under the ongoing Extended Credit Facility (ECF) program.
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The IMF Executive Board is scheduled to convene next month (June 2024) to deliberate on the second review and endorse Ghana’s third tranche, thus facilitating the disbursement of US$360 million to the country.
The signing of the MoU, coupled with the disbursement of the US$360 million, is crucial for stabilizing the Ghanaian Cedi against major trading currencies, notably the Dollar.
Dr. Ernest Addison, Governor of the Bank of Ghana (BoG), expressed confidence that the US$360 million injection would bolster the country’s foreign currency reserves upon reaching the agreement on the second review of the program.
Foreign currency reserves, comprising cash and other assets, play a vital role in maintaining the stability of domestic currencies and providing liquidity during economic crises, as highlighted by the World Economic Forum.
Professor Godfred Alufar Bokpin, an Economist from the University of Ghana, emphasized the positive impact of the impending development on stabilizing the Cedi, which has faced recent depreciation.
Meanwhile, at the second quarter CEOs Breakfast Meeting, Dr. Stephen Amoah, a Deputy Finance Minister, advocated for increased patronage of domestic tourism and hospitality centers.
He underscored the importance of retaining money within the country to mitigate the depreciation of the Cedi, emphasizing domestic tourism’s role as one of Ghana’s top four sector contributors to foreign exchange inflows.
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