Ghana has received the first tranche of $600 million from the recently secured three-year extended credit facility from the International Monetary Fund, IMF.

Ghana’s Finance Minister, Ken Ofori-Atta who made the announcement via his official Twitter account said the monies will be utilized for budget support and to help reduce inflation.

Recall that the International Monetary Fund’s executive board authorized a $3 billion three-year rescue loan on Wednesday, paving the way out of Ghana’s worst economic crisis in a decade.

The remaining amount of the loan will be disbursed in tranches of $360 million every six months, subject to meeting the IMF programme conditions.

Apart from the loan, Accra will also benefit from other donors to support the country’s economic development.

The World Bank will further come on board with about $900 million to support Ghana’s Budget.

The credit facility is expected to promote macroeconomic stability and debt sustainability, as well as establish a firm platform for inclusive and sustainable growth and job creation, while protecting Ghana’s most vulnerable citizens.

Mr Ofori-Atta noted that the program would strive to reduce Ghana’s debt to GDP ratio to 55%, which, in addition to the revenue initiatives in the 2023 budget, would provide the necessary resources to carry the country ahead.

He stressed that the goal of getting back to the international capital market, which Ghana has been locked out of for more than a year, was to increase the ratings and outlook of Accra in order to attract more Foreign Direct Investment (FDI).

“There’s no rush to go back to the international capital markets. Our expectation is that in managing our expenditure and increasing our revenue, we’ll have the resources to it,” Mr Ofori-Atta said.

i-News Nigeria