Ghana Secures $360 Million from IMF for Second Review of Extended Credit Facility

Ghana has achieved a significant milestone in its economic partnership with the International Monetary Fund (IMF) by securing a $360 million disbursement pending approval by the Fund’s Board.

This accomplishment follows the successful negotiation of a Staff-Level agreement for the second review of the extended credit facility.

Led by Stéphane Roudet, Mission Chief for Ghana, an IMF staff team conducted extensive meetings in Accra from April 2-12 to evaluate progress on reforms and outline policy priorities within Ghana’s three-year program under the Extended Credit Facility.

The IMF Executive Board sanctioned the $3 billion arrangement on May 17, 2023. With this recent development, Ghana is set to receive additional financial support, bringing the total IMF disbursement under the arrangement since May 2023 to around $1,560 million.

Upon completion of the Executive Board review, Ghana will gain access to the $360 million disbursement, subject to IMF Management approval 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 highlighted the positive outcomes of Ghana’s adherence to the IMF-supported program, emphasizing the country’s strong economic performance, robust growth projections for 2024, a significant decrease in inflation due to prudent monetary policy, and improvements in fiscal management.

Ghana has shown fiscal discipline, with spending within budget limits and a primary fiscal balance on track to achieve a surplus in 2024. The country has also made progress in revenue mobilization, structural fiscal reforms, and enhancing transparency in public financial management.

Furthermore, Ghana’s external sector has improved significantly, exceeding international reserve accumulation targets. Financial stability has been maintained, leading to solid bank profits in 2023.

Mr. Roudet stressed the importance of Ghana reaching an agreement with official bilateral creditors on an MoU consistent with program terms to sustain progress under the IMF-supported program and ensure economic stability and growth.

The successful negotiation of the Staff-Level agreement demonstrates the commitment of both Ghana and the IMF to promote economic resilience and prosperity. Continued cooperation and adherence to reform commitments will be crucial for achieving sustained development and inclusive growth in Ghana.

The IMF staff team commended Ghanaian authorities for their transparent and collaborative engagement throughout the process, involving key stakeholders such as Finance Minister Dr. Amin Adam, Bank of Ghana Governor Dr. Ernest Addison, and representatives from various government agencies.