Ghana awaits the International Monetary Fund (IMF) to approve a first loan tranche of $600 million as soon as Wednesday.
The loan is expected to be approved within a week, said Mohammed Amin Adam, a minister of state in the finance ministry.
The IMF Managing Director, Kristalina Georgieva, stated on Friday that the IMF Executive Board is considering approving a $3 billion loan after receiving the required assurances from Ghana’s formal creditors.
He said that a second $600 million tranche is set to be authorized after a positive initial evaluation of the program.
This is expected to take place in November or December, with the remaining funds being allotted in equal tranches of $360 million following semi-annual reviews.
He also said, the money will assist Ghana reach its goal of having foreign reserves equal to three months’ worth of imports by 2026 by bolstering its financial position.
Ghana, like Sri Lanka and Zambia, is restructuring its debt due to the economic fallout from COVID-19 and Russia’s invasion of Ukraine.
The restructuring includes $5.4 billion of debt to official creditors and $14.6 billion of debt to private overseas creditors.
Adam anticipated that talks with both groups of lenders would proceed smoothly once IMF authorized the loan, adding that the negotiation date for both groups had not been set.
However, Ghana is seeking $900 million in support from the World Bank to help it restore macroeconomic stability and end its economic crisis.
The funds will be disbursed in three equal installments of $300 million over three years.
The World Bank has agreed to provide $250 million to Ghana’s financial sector stability fund.
The fund will help Ghana solve insolvency and liquidity challenges following a domestic debt exchange program that has affected some domestic banks.
Also, Ghana is in talks with the African Development Bank for an additional $100 million for the fund, said Adam.