Ghana targeting about US$3 billion under IMF programme – Finance Ministry

Ghana to hold talks with IMF for economic programme

President Akufo-Addo to address nation on IMF engagements

The Government of Ghana is targeting about US$3 billion from the International Monetary Fund under an economic support programme.

This was contained in a document released by the Ministry of Finance spelling out some details of government’s engagement with officials from the Bretton Woods institution on July 6.

The ministry explained that it seeks to secure the fund under a recently introduced innovative blended programme from the IMF dubbed; High Combined Credit Exposure (HCCE) policy.

“The innovative HCCE establishes annual and cumulative thresholds for high combined credit from the GRA and the PRGT above which certain substantive and procedural requirements would have to be satisfied.

The HCCE then allows qualifying countries to access from both PRGT and GRA and hence qualifying countries can access significant financing beyond what existing quotas can allow,” the document explained.

The Ministry of Finance cited that Benin is the first country that has reached an agreement under this new HCCE (an ECF/EFF blend) to help the country deal with pressing financing needs related to security, COVID-19 pandemic and the Russia-Ukraine crisis.

“Given the above, it is believed Ghana could easily be considered under this new HCCE (a potential ECF/EFF blend) given that Ghana faces similar challenges to what Benin is facing. Benin’s program is expected to last for 42 months,” it noted

“Under the HCCE, it is expected that Ghana could have a blended ECF/EFF program and get more than the US$1 billion, which was approved for the last ECF facility, but not exceeding US$3 billion,” the Ministry of Finance added.

Meanwhile, officials from the IMF are expected to arrive in Ghana on Tuesday, July 5 to commence negotiations from July 6 with the Government of Ghana on the modalities for a package to support Ghana’s economy.

MA/FNOQ