The International Monetary Fund (IMF) is preparing to review and potentially approve a $360 million disbursement to Ghana as part of its $3 billion Extended Credit Facility. The IMF’s Executive Board is scheduled to meet in early December to deliberate on the matter. If the disbursement is approved, it will bring Ghana’s total receipts under the program to $1.92 billion.
The upcoming decision follows a detailed two-week assessment of Ghana’s fiscal data, culminating in a staff-level agreement between the IMF and Ghana during the third review of the program. The agreement was reached on October 4 and marked a significant step forward in the implementation of the program’s objectives.
Julie Kozack, the IMF’s Director of Communications, provided an update on the matter during a press briefing held in Washington, D.C. on November 21. She outlined the progress Ghana has made under the program and emphasized the importance of continued policy implementation to maintain economic stability.
“Once the review is completed by the IMF’s executive board, Ghana would have access to about $360 million in terms of disbursement,” Kozack stated. She also confirmed that IMF staff are working toward finalizing arrangements for the board meeting, with precise details of the date to be announced in due course.
Kozack described Ghana’s performance under the program as encouraging, noting that the country has adhered to the requirements necessary for its ongoing debt restructuring efforts. She highlighted the remarkable progress Ghana has made in this area, a key component of the program aimed at ensuring debt sustainability.
“What I can say in addition is that the programme performance has been good. There has been, in particular, remarkable progress on debt restructuring,” she remarked. Kozack further noted that economic growth in Ghana during the first half of 2024 had exceeded expectations and projections, signaling a positive trend for the country’s recovery efforts.
The IMF official also observed that inflation in Ghana has declined significantly, while fiscal and external positions have shown marked improvement. These achievements reflect the government’s commitment to implementing reforms aimed at stabilizing the economy and addressing the challenges it faces.
“Economic growth in the first half of 2024 exceeded our expectations, exceeded our projections. Inflation has declined and the fiscal and external positions have shown marked improvement,” Kozack said.
Looking ahead, Kozack emphasized the importance of Ghana maintaining its policy and reform agenda to achieve macroeconomic stability and sustainable debt levels. She acknowledged the difficult economic conditions affecting many countries in the region and globally, underscoring the need for continued effort in implementing necessary reforms.
“Looking ahead, what will be important for Ghana will be the continued implementation of the policy and reform agendas, especially given the difficult situation that many countries in the region and globally face. And it remains essential to fully restore macroeconomic stability and debt sustainability,” she stated.
Kozack assured that additional updates on Ghana’s progress would be provided once the IMF’s Executive Board completes its review. She indicated that a staff report detailing the program’s outcomes and recommendations would be published following the board meeting.
“And we will, of course, have further updates on Ghana when we release the staff report, when we publish the staff report after the board meeting takes place,” she added.
The IMF’s Extended Credit Facility program for Ghana was initiated to address the country’s economic challenges, including high inflation, a significant fiscal deficit, and unsustainable debt levels. The program is designed to provide financial support while encouraging structural reforms to restore stability and promote growth.
The anticipated $360 million disbursement will further bolster Ghana’s efforts to stabilize its economy. It comes at a time when the government is focused on restructuring its debt to ensure sustainability and improve investor confidence. The support from the IMF is expected to complement these efforts by providing much-needed financial resources and technical assistance.
Ghana’s commitment to the program’s objectives has been evident in its strong performance and willingness to implement reforms. The progress achieved thus far, particularly in debt restructuring and economic growth, underscores the potential for a sustained recovery. However, challenges remain, and the government must remain vigilant in its efforts to fully restore stability and achieve long-term sustainability.
The IMF’s decision in December will mark a critical milestone in Ghana’s economic recovery journey. Approval of the $360 million disbursement will not only provide additional financial resources but also signal confidence in the country’s reform agenda. As the board meeting approaches, all eyes will be on the IMF’s evaluation of Ghana’s performance and its recommendations for the way forward.
Ghana’s ability to navigate its economic challenges and meet the program’s objectives will ultimately determine the success of the Extended Credit Facility. With continued support from the IMF and sustained commitment from the government, the country has the potential to emerge stronger and more resilient in the face of global economic uncertainties.
