Ghana to sign bilateral creditors’ MoU next week – Finance Minister

Ghana is poised to finalize a Memorandum of Understanding (MoU) with its official bilateral creditors in the upcoming week.

This critical step comes as Ghana prepares for the second review necessary for IMF Board consideration in June. Dr. Adam affirmed that all prerequisites for the review had been met, awaiting the draft next week for signing. he said on Accra based media

These discussions occurred alongside the 2025 Africa Prosperity Dialogues inaugurated in Accra. The signing of this MoU holds significant importance as it unlocks Ghana's access to the third tranche of US$360 million from the International Monetary Fund (IMF), following the Staff Level Agreement reached with the Fund's Mission Team in April.

This initiative aligns with the government's broader strategy to restructure its external debt of around US$13 billion, aiming to meet debt sustainability criteria under the Extended Credit Facility (ECF) program.

The anticipated meeting of the IMF Executive Board in June is expected to approve the country's third tranche, facilitating the disbursement of the mentioned above US$360 million.

The signing of the MoU, coupled with the disbursement of funds, is pivotal in stabilizing the Cedi against major trading currencies, particularly the Dollar.

Dr. Ernest Addison, Governor of the Bank of Ghana, expressed confidence that this infusion of funds would bolster the country's foreign currency reserves, crucial for maintaining currency stability and liquidity during economic uncertainties.

Economist Professor Godfred Alufar Bokpin from the University of Ghana emphasized the positive impact of these developments in stabilizing the Cedi, which has recently faced depreciation. He highlighted the significance of finalizing the MoU, which had been agreed upon in principle earlier in January 2024.

Moreover, Deputy Finance Minister Dr. Stephen Amoah stressed the importance of promoting domestic tourism and hospitality during a recent CEO's Breakfast Meeting. Given that tourism and hospitality rank among Ghana's top sectors contributing to foreign exchange, he advocated for increased patronage to retain money within the country, thereby mitigating currency depreciation risks.

Dr. Amoah encouraged Ghanaians to embrace domestic tourism, citing its potential to attract foreign currency inflows and boost confidence in the national economy.