IMF's first tranche disbursement was out of magnanimity – Laud Mensah

A senior economics lecturer at the University of Ghana Business School (UGBS), Dr Laud Mensah, has emphasised the importance of transparency ahead of the disbursement of the second tranche of the three-billion-dollar International Monetary Fund (IMF) bailout for Ghana.

According to the lecturer, the first tranche (USD600 million) of the bailout was provided by the IMF on the basis of magnanimity.

He noted that negotiating all debts is a prerequisite before the IMF advances a loan to a country in economic mess.

“All these prerequisites were frowned on solely on magnanimity basis, and the delay in the disbursement of the second tranche is due to the IMF's insistence on the right procedures being followed this time,” he argued.

The lecturer highlighted the potential consequences of missing the deadline for the second tranche, which could lead to additional challenges for Ghanaians.

Dr Mensah gave this insight speaking on the mid-day news on Accra 100.5 FM on Monday November 13, 2023.

Concerns were raised about the possible downward trend of the cedi against the dollar if the second tranche fails, he stressed.

The economics lecturer explained that the IMF and the Cocoa Syndicated Loan play a crucial role in supporting the cedi against the dollar, and difficulties in attracting investors for the annual syndicate cocoa loan will contribute to the economic challenges of the country.

As the Finance Minister prepares to present the 2024 budget to Parliament, the lecturer stressed the importance of adhering to IMF requirements to ensure the smooth disbursement of the second tranche and alleviate economic pressures on Ghanaians.