This achievement follows the successful negotiation of a Staff-Level agreement for the second review of the extended credit facility.
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Ghana clinches $360 million from IMF with staff-level accord for second review of extended credit facility
Ghana has reached a significant milestone in its economic partnership with the International Monetary Fund (IMF), securing a $360 million disbursement subject to the Fund's Board Approval.
FILE PHOTO: The International Monetary Fund (IMF) headquarters building is seen ahead of the IMF/World Bank spring meetings in Washington, U.S., April 8, 2019. REUTERS/Yuri Gripas/File Photo
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Led by Stéphane Roudet, Mission Chief for Ghana, an IMF staff team held extensive meetings in Accra from April 2-12, the purpose of these discussions was to assess progress on reforms and outline the authorities’ policy priorities within the framework of Ghana’s three-year program under the Extended Credit Facility.
The IMF Executive Board approved the arrangement, totaling $3 billion, on May 17, 2023. With this recent development, Ghana stands to benefit from additional financial support, bringing the total IMF disbursement under the arrangement since May 2023 to approximately $1,560 million.
Upon completion of the Executive Board review, the disbursement of $360 million will be accessible to Ghana.
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However, this is contingent upon the approval of IMF Management and the fulfillment of necessary financing assurances, including an agreement between Ghanaian authorities and official creditors on a Memorandum of Understanding (MoU) for debt treatment in line with program parameters.
Mr. Roudet, the Mission Chief for Ghana, emphasized the positive outcomes resulting from Ghana's adherence to the IMF-supported program. He highlighted the country's strong economic performance, noting robust growth projections for 2024, a rapid decline in inflation due to appropriately tight monetary policy, and notable improvements in fiscal management.
Ghana has demonstrated fiscal discipline, with spending remaining within budget limits and a primary fiscal balance on track to achieve a surplus in 2024. The country has also made strides in revenue mobilization, structural fiscal reforms, and enhancing transparency in public financial management.
Moreover, Ghana's external sector has seen significant improvement, with international reserve accumulation surpassing program objectives. Financial stability has been upheld, contributing to solid profits for banks in 2023.
Looking ahead, Mr. Roudet underscored the importance of Ghana reaching an agreement with its official bilateral creditors on an MoU consistent with program terms. This alignment is crucial for sustaining Ghana's progress under the IMF-supported program and ensuring continued economic stability and growth.
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Throughout the process, the IMF staff team commended the Ghanaian authorities for their transparent and collaborative engagement. The discussions involved key stakeholders, including Finance Minister Dr. Amin Adam, Bank of Ghana Governor Dr. Ernest Addison, and representatives from various government agencies.
The successful negotiation of the Staff-Level agreement reflects the commitment of both Ghana and the IMF to foster economic resilience and prosperity. Moving forward, continued cooperation and adherence to reform commitments will be essential in achieving sustained development and inclusive growth for Ghana.
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