Mr. Kennedy Osei Nyarko, the Chairman of Parliament’s Roads and Transport Committee, has stated that the first loan tranche of US$600 million to be disbursed by the International Monetary Fund will support the country’s economic recovery and give external creditors confidence in the way forward regarding road project disbursement.
Speaking during an interview, Mr. Osei Nyarko – who is also a Member of Parliament for Akim Swedru noted that the end result of the IMF negotiations will aid the government to make a choice on its external creditors.
Government, he said, is undertaking major road projects across the country; however, some have stalled due to lack of funds.
“Roads are ongoing, there is a big project on the Nsawam stretch which is being funded by government of Ghana, it is an extended credit facility but because of the economic difficulties, government decided to suspend its debt/loan servicing. So, all those creditors also decided to suspend disbursement of loans. It is when the disbursement comes that the work or project can continue.
“They were all waiting to hear the decision government will take or the outcome of government’s negotiations with the IMF. Now thankfully, government is at the tail end of negotiations with IMF and I am sure the moment they finish, they will take a final decision and the creditors will know the way forward.”
Mr. Kennedy Osei Nyarko
IMF Funds To Strengthen Ghana’s BoP
According to the Roads and Transport Chairman, the funds soon to be released by IMF will assist in correcting the country’s balance of payments.
“The IMF money is essentially a balance of payment support which government will deposit in the central bank coffers to shore up our reserves. The moment that happens, it strengthens our cedi which will translate into things easing a bit.”
Mr. Kennedy Osei Nyarko
The MP for Akim Swedru further praised the government for the measures being put in place to revive back and stabilize the economy.
“I think government is on track and it is the hope that by December inflation target of 21percent can be attained and we hope that if that happens, prices of goods and services will fall drastically; that is our expectation.”
Mr. Kennedy Osei Nyarko
He also supported the drop of fuel prices in the second pricing window in May 2023, and expressed optimism that it would continue for the benefit of Ghanaians.
Government expects the IMF to approve a first loan tranche of $600 today (Wednesday), paving the way for disbursement within a week, as government officials have disclosed.
The second tranche of $600 million is expected to be approved after a successful first review of the programme, sometime in November or December, with the rest disbursed in equal tranches of $360 million after semi-annual reviews.
Read also: GCB Bank Holds Breakfast Meeting To Engage Business Clients
