The International Monetary Fund (IMF) has reiterated the importance of Ghana’s steadfast commitment to its bailout program to fully harness its benefits. With the recent disbursement of the $600 million second tranche to the government, the IMF underscored the critical need for effective implementation of structural reforms outlined in the program.
Despite Ghana’s efforts to engage the IMF regarding anticipated revenue shortfalls due to the planned suspension of the VAT on electricity, following opposition from the Trades Union Congress (TUC), the IMF emphasized the necessity for Ghana to diligently follow the agreed-upon austerity measures to navigate its way out of the economic crisis.
Abebe Selassie, Director of the IMF’s African Department, emphasized the significance of adhering strictly to the program’s guidelines for Ghana’s economic prosperity. He stated, “What I can say is that going forward, it would be really important that Ghana continues to implement the program that they have developed as envisaged. That is really critical.”
Mr. Selassie noted Ghana’s positive performance within the program, highlighting the results of implemented reforms and indications of economic stabilization. He remarked, “Ghana’s program is being implemented effectively. We just went to the board recently with the first program review following, of course, the policies that the government has been putting in place to address the huge imbalances Ghana was facing last year.”
In late January, the Bank of Ghana confirmed the receipt of $600 million as the second tranche intended for budget support and currency stabilization, bringing the total disbursement to $1.2 billion out of the approved $3 billion under the three-year extended credit facility granted in May 2022.
The next review of Ghana’s IMF program is slated for June 2024, aimed at securing the third tranche of around $360 million.
The IMF’s call for adherence to the bailout program underscores the importance of sustained efforts to implement reforms and achieve economic stability in Ghana.
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