IMF bailout: 20% upfront disbursement is historically high – Bright Simons

Policy analysts and market watchers were skeptical about the possibility of Ghana being able to clock an IMF approval by Wednesday, May 17, 2023, as was widely speculated by the government.

The government had noted that once all the pre-conditions were met; after financing assurances were given by Ghana’s creditors, the country may receive the first tranche of the $3 billion financial support from the fund.

In the late hours of May 17, 2023, the IMF Executive Board approved the $3 billion Extended Credit Facility Arrangement for Ghana. The first part of the disbursement is 20% of the $3 billion.

The Vice President of the policy think tank, Bright Simons reacting to development stated that the figure is historically high considering what the IMF has disbursed in times past.

In a tweet on May 17, 2023, he wrote: “The deed is finally done. Part One of the long-running saga is at an end. Ghana got all it wanted. The 20% upfront disbursement is historically high. In 2014, just 12% was disbursed. The government has hinted that it expects aggressive disbursement of 40% of the total loan in year 1.”

“Of course, this also means Ghana needs to deliver on the big commitments it has made to unlock the money. For example utility prices will go up again. This is understandable SO LONG as it isn't all about just shifting the pain to citizens whilst WASTE & GRAFT continue to fester!” he added.

He however added that government has not shown any sense of responsibility since the beginning of the country’s economic woes adding that this has been one major concern for most Ghanaians, especially civil society.

He continued that, “For many of us in Civil Society, we have one major, unresolved, concern in all of this: since this saga began, all we have seen is govt shifting the burden to citizens. There is absolutely no change that we can discern in how the govt manages state affairs! This must change!”

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The deed is finally done. Part One of the longrunning saga is at an end. Ghana got all it wanted. The 20% upfront disbursement is historically high. In 2014, just 12% was disbursed. The govt has hinted that it expects aggressive disbursement of 40% of the total loan in year 1. pic.twitter.com/BRfn4qtdHv

— Bright Simons (@BBSimons) May 17, 2023

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Of course, this also means Ghana needs to deliver on the big commitments it has made to unlock the money. Example: utility prices will go up again. This is understandable SO LONG as it isn't all about just shifting the pain to citizens whilst WASTE & GRAFT continue to fester! pic.twitter.com/dNuwEY6Y2D

— Bright Simons (@BBSimons) May 17, 2023

3/
For many of us in Civil Society, we have one major, unresolved, concern in all of this: since this saga began, all we have seen is govt shifting the burden to citizens. There is absolutely no change that we can discern in how the govt manages state affairs! This must change! pic.twitter.com/hd9XFSYWM8

— Bright Simons (@BBSimons) May 17, 2023