Finance Minister, Ken Ofori-Atta has disclosed that government is yet to reflect the funding support from the IMF and the World Bank as well as the Cocoa syndicated loans of about $2 billion in its Gross International Reserves.

“We are yet to reflect IMF/WB and Cocoa syndication of approximately $2 billion by year-end”, Ken Ofori-Atta said while presenting the 2024 Budget in Parliament Wednesday, November 15, 2023.

The Finance Minister also revealed that Ghana’s “Gross International Reserves (GIR) as at September 2023 stood at US$5.0 billion (2.3 months import cover) compared to US$6.3 billion (2.7 months of import cover) at end-December, 2022."

IMF second tranche

Ghana is expecting additional $600 million to bring total disbursement under the IMF programme in 2023 to $1.2 billion. According to the Fund, Ghana will have access to the second tranche of $600 million once it secures necessary financing assurances from its external external creditors. The West African nation has tabled a bold proposal to its external commercial creditors aksing for a haircut on principals of up to 40% and an additional haircut of not more than 5% on interest.

Ghana is also hoping to gain significant fiscal breathing space through a debt rework with its bilateral creditors including China and the Paris Club.

In total, the Ghanaian authorities expect funding support of some $3 billion in fiscal years (2023-2026). $1.2 billion is projected to hit the Bank of Ghana’s account by the end of 2023; $720 million in 2024, an additional $720 million in 2025, and the last disbursement of $360 million in 2026.

World Bank

Aside from the IMF, the World Bank is also expected to make available additional funding support of $1.55 billion during the IMF programme period. A total funding support of $530 million is expected by the end of 2023, $420 million by 2024; an additional $350 million in 2025, and the final funding of $250 million in 2026.

Cocoa syndicated loan

In the 2023/2024 crop season, Cocobod has indicated that it expects funding support estimated at some $1.2 billion. Cocobod has clarified that it is in the process of raising $800 million from a syndicate of banks to finance cocoa purchases with additional inflows from other loan arrangements.