The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of $360 million to Ghana under its $3 billion Extended Credit Facility (ECF).
This follows the successful completion of Ghana’s third review under the program, as announced on Monday, December 2, 2024
The Fund said Ghana’s policy and reform efforts under the IMF-supported programme have continued to deliver encouraging results.
This follows acute economic and financial pressures in 2022.
The IMF pointed out that its Fund-supported programme has provided a credible anchor for the government to adjust macroeconomic policies and launch comprehensive reforms to restore macroeconomic stability and debt sustainability while laying the foundations for higher and more inclusive growth.
“These efforts are paying off, with growth recovering rapidly, inflation declining, although at a slower pace, and the fiscal and external positions further improving. The medium-term outlook remains favorable but subject to downside risks, including those stemming from the elections and the challenges in the energy sector”, it mentioned in a statement.
“Ghana’s performance under the IMF-supported programme has been generally satisfactory. All quantitative performance criteria and indicative targets for the third review were met. Notwithstanding some delays, good progress has also been made on the key structural reforms”, it added.
It continued that the Ghanaian authorities have continued to make remarkable headways on their public debt restructuring, adding “After successfully restructuring domestic debt last year and reaching agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June 2024, the government has completed the exchange of its Eurobonds at conditions consistent with programme parameters.
The authorities, it alluded have also intensified engagement with their remaining external commercial creditors on a restructuring in line with program parameters and comparability of treatment.
The expected $360 million will help boost the country’s reserves and consequently strengthen the cedi.
Source: Business Analyst
