The International Monetary Fund (IMF) has reached a staff-level agreement with Ghana on the second review of Ghana’s 36-month Extended Credit Facility (ECF)-supported program.
Upon approval by IMF Management and formal completion by the IMF Executive Board, Ghana is set to gain access to approximately US$360 million in financing.
Team lead, Mr. Stéphane Roudet, Mission Chief for Ghana, indicated “I am pleased to announce that IMF staff and the Ghanaian authorities have reached a staff-level agreement on the second review of Ghana’s economic program under the Extended Credit Facility arrangement. This staff-level agreement is subject to IMF Management approval and Executive Board consideration once the necessary financing assurances have been received. An agreement between the Ghanaian authorities and their official creditors on an MoU for debt treatment in line with program parameters would provide the needed financing assurances. Upon completion of the Executive Board review, Ghana would have access to SDR 269.1 million (about US$ 360 million), bringing the total IMF financial support disbursed under the arrangement since May 2023 to SDR 1,171.9 million (about US$ 1,560 million).”
He added that “economic activity in 2023 was more robust than initially envisaged, and growth projections for 2024 will be revised upward. Monetary policy has remained appropriately tight, allowing for inflation to decline rapidly.”
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Following this, Ghana must expedite agreements consistent with the January 2024 terms with bilateral creditors. According to the IMF, reaching agreements consistent with the terms established in January 2024 with bilateral creditors is imperative for paving the way for the IMF Executive Board’s approval.
The staff team underscores the urgency of this step, stating that Ghana’s strong progress hinges upon successfully reaching such agreements. “Given Ghana’s strong progress under the IMF-supported program, the next key step for the country is to reach an agreement with its official bilateral creditors on an MoU consistent with the terms agreed in January 2024.”
This underscores the government’s dedication to good governance and fiscal responsibility. Ghana has consistently adhered to budgetary constraints, even amid challenges, while simultaneously broadening its social protection initiatives to shield the most vulnerable from the crisis’s repercussions. Moreover, the government has effectively mobilized non-oil revenue, managed public finances and debt levels prudently, and achieved notable strides in implementing ambitious structural fiscal reforms aimed at enhancing domestic revenue streams.
