Following, the conclusion of the NPP Presidential election, it is imperative for our nation to refocus on the sobering reality we face as citizens: a hardship economy. Our economy, marred by mismanagement, teeters on the brink of collapse and currently relies heavily on a $3 billion life support from the IMF.
In May 2023, the IMF Executive Board approved a $3 billion Extended Credit Facility Arrangement for Ghana, with a first disbursement of $600 million. The scheduled second tranche payment of $600 million, due on November 1, 2023, has yet to be received as of today, November 7. This raises concerns about the government’s compliance with the IMF’s conditions for subsequent payments.
The government had planned to restructure about $10.5 billion of Ghana’s external debts as part of the IMF conditionalities but sources from Washington DC indicate sluggish progress in negotiations with Ghana’s key creditors, including China and the Paris Club, posing a significant threat to Ghana’s economic recovery.
It is crucial for the government to provide transparency regarding the status of the external debt restructuring and confirm whether the second tranche payment is coming soon, as stipulated by the IMF in their payment schedule.
Additionally, the separate $1.5 billion Ghana Financial Stability Fund remains unrealized, despite missed deadlines in July and October. This delay, coupled with the government’s lackadaisical approach to supporting the financial sector, raises alarming prospects of an impending banking crisis. Clarity and decisive actions are imperative to safeguard our nation’s economic future.