We haven’t missed any deadline for second tranche of IMF cash – Finance Ministry

The Ministry of Finance has denied reports in the media that the government missed the deadline for the release of the second tranche of the $3 billion cash from the International Monetary Fund (IMF).

The reports indicated that Ghana missed out on the November 1 timeline.

But a press statement, dated November 10, 2023, clarified that the timeline for the IMF Executive Board’s consideration and approval of the first review is not November 1, 2023, but rather the actual Board date will be determined by the IMF Executive Board.

“The attention of the Ministry of Finance has been drawn to an above-titled misleading publication on Myjoyonline, about Ghana missing a purported deadline of 1st November, 2023, for the disbursement of the second tranche of International Monetary (IMF) Funds.

“The Ministry thus wishes to set the record straight:

“There is no 1st November 2023 timeline for disbursement of the second tranche of the IMF funds. No deadline has been set by the IMF for the second tranche disbursement, which is due to take place after the IMF Executive Board approves the first review.

“The publication by Myjoyonline references Table 9 on page 72 of the Memorandum of Economic and Financial Policies (MEFP) published on 17th May 2023 by the IMF. The November 1 stated in this table is an indicative timeline for completion of the first review, based on the observance of the end-June 2023 performance criteria.

“This first review was completed on 6th October 2023, culminating in a Staff Level Agreement (SLA) on the same day,” part of the statement said.

Regarding external debt restructuring negotiations, the Ministry of Finance affirmed that they are progressing smoothly.

“External debt restructuring negotiations are progressing smoothly. The Government of Ghana is making good progress with its strategic plan to engage the Official Creditor Committee (OCC) of the Paris Club; secure a Memorandum of Understanding on debt restructuring; and go before the IMF Executive Board for approval of the first review.

“Myjoyonline’s misinformation about a 1st November deadline for disbursement of IMF Funds contradicts its publication of 2nd November 2023.

“It is trite knowledge that the IMF Executive Board Meeting to approve Ghana’s first review must occur before the disbursement of the next tranche of IMF Funds.

“On 2nd November 2023, Myjoyonline published an article titled, “IMF Executive Board to meet in 3rd week of November, Ofori-Atta hints” which contradicts the false publication of a 1st November deadline,” the press release added.

Read the full statement below

FOR: IMMEDIATE RELEASE

RE: FALSE PUBLICATION BY MYJOYONLINE – “GHANA MISSES OUT ON IMF’S NOV 1 TIMELINE FOR 2ND TRANCHE AS EXTERNAL DEBT RESTRUCTURING TALKS DRAG”

Accra, 10th November, 2023… The attention of the Ministry of Finance has been drawn to an above-titled misleading publication on Myjoyonline, about Ghana missing a purported deadline of 1st November 2023, for the disbursement of the second tranche of International Monetary (IMF) Funds.
2. The Ministry thus wishes to set the record straight:

a.There is no 1st November 2023 timeline for the disbursement of the second tranche of the IMF funds. No deadline has been set by the IMF for the second tranche disbursement, which is due to take place after the IMF Executive Board approves the first review.

The publication by Myjoyonline references Table 9 on page 72 of the Memorandum of Economic and Financial Policies (MEFP) published on 17th May 2023 by the IMF. The November 1 stated in this table is an indicative timeline for completion of the first review, based on the observance of the end-June 2023 performance criteria. This first review was completed on 6th October 2023, culminating in a Staff Level Agreement (SLA) on the same day.

Whilst the SLA milestone is an important step towards unlocking the second tranche of $600 million under the program, the timeline set by the Executive Board for the consideration and approval of the first review is not on 1st November 2023 as published by Myjoyonline. The exact timeline for the Board date is determined by the IMF Executive Board.

b.External debt restructuring negotiations are progressing smoothly. The Government of Ghana is making good progress with its strategic plan to engage the Official Creditor Committee (OCC) of the Paris Club; secure a Memorandum of Understanding on debt restructuring; and go before the IMF Executive Board for approval of the first review.

c.Myjoyonline’s misinformation about a 1st November deadline for disbursement of IMF Funds contradicts its publication of 2nd November 2023. It is trite knowledge that the IMF Executive Board Meeting to approve Ghana’s first review must occur before the disbursement of the next tranche of IMF Funds.

On 2nd November 2023, Myjoyonline published an article titled, “IMF Executive Board to meet in 3rd week of November, Ofori-Atta hints” which contradicts the false publication of a 1st November deadline.

3. The Ministry of Finance therefore encourages the general public and media houses in particular, to seek the facts and truth about any information that comes to their attention, by reaching out to the Ministry for clarification whenever they are in doubt. They may also visit our website www.mofep.gov.gh or email info@mofep.gov.gh