Ghana receives $360M boost from IMF after third review

• Posted on December 3, 2024December 3, 2024
• by Nana Kwesi Coomson
• Comment

The International Monetary Fund (IMF) has approved a $360 million disbursement to Ghana following the successful completion of the third review under its $3 billion Extended Credit Facility (ECF) program. This brings Ghana’s total receipts from the program to $1.92 billion, with the funds expected to be credited to the Bank of Ghana by the end of the week.

According to an IMF statement, Ghana’s performance under the ECF has been “generally satisfactory,” with notable progress in key economic areas. “Growth is recovering rapidly, inflation has declined—although at a slower pace, and the fiscal and external positions have continued to improve,” the IMF stated.

Debt Restructuring Milestones

Ghana’s government has made significant strides in restructuring its public debt. Following the successful restructuring of domestic debt in 2023, the country reached an agreement with the Official Creditors Committee (OCC) under the G20 Common Framework in June 2024. Additionally, Ghana has completed the exchange of its Eurobonds under conditions aligned with the ECF program parameters. The government is now intensifying negotiations with external commercial creditors to finalize a comparable restructuring deal.

Monetary and Financial Sector Stability

The Bank of Ghana (BoG) continues to implement prudent monetary policies to reduce inflation and rebuild international reserves. The IMF acknowledged the BoG’s efforts in strengthening financial sector stability, including measures to ensure timely bank recapitalization and maintaining the viability of the banking sector. Additionally, the government has initiated the recapitalization of state-owned banks in line with available resources.

The IMF’s approval of this latest disbursement underscores confidence in Ghana’s ongoing reforms and recovery efforts. The funds are expected to further bolster economic stability, support debt management, and foster sustainable growth.

As Ghana continues to implement structural reforms and engage with its creditors, the IMF remains a key partner in the nation’s journey toward economic resilience and fiscal consolidation.

-3news