The International Monetary Fund (IMF) Executive Board has approved a $360 million disbursement to Ghana following the successful completion of the third review of the country’s $3 billion Extended Credit Facility (ECF) program.
This brings the total amount disbursed under the program to $1.92 billion, with the latest tranche expected to be credited to the Bank of Ghana by the end of the week.
Progress Under the ECF Program
The IMF commended Ghana for its satisfactory performance under the program, citing progress in reform efforts and debt restructuring. According to an official statement, Ghana has made strides in stabilizing its economy:
- Debt Restructuring: The government has successfully restructured domestic debt and reached a Memorandum of Understanding with the Official Creditors Committee under the G20 Common Framework in June 2024. Additionally, the exchange of Eurobonds has been completed under conditions aligned with the program’s parameters.
- Inflation and Growth: Inflation is declining, albeit at a slower pace, while economic growth is rebounding.
- Fiscal and External Improvements: Ghana’s fiscal and external positions have shown continued improvement.
Bank of Ghana’s Role
The IMF lauded the Bank of Ghana (BoG) for maintaining prudent monetary policies to combat inflation and rebuild international reserves. Key measures include:
- Strengthening financial sector stability through actions promoting recapitalization and ensuring the sustainability of banks.
- Supporting the government’s efforts to recapitalize state-owned banks in line with available resources.
Moving Forward
The IMF highlighted the importance of sustained efforts in external debt restructuring, emphasizing comparability of treatment among creditors. The government has intensified engagements with external commercial creditors to meet program objectives.
The approval and disbursement reflect the IMF’s confidence in Ghana’s reform trajectory under the ECF. The funds are expected to further stabilize the economy and support growth while addressing fiscal and monetary challenges.
The IMF’s support underscores Ghana’s progress in navigating its economic recovery and rebuilding investor confidence amidst ongoing global and domestic challenges.
