The International Monetary Fund (IMF), in collaboration with the Ministry of Finance and Bank of Ghana (BoG), is developing a solid plan to revive the nation’s financial sector. The plan will be published by the end of June this year.
This is a significant part of the suggested structural reforms covered by the US$ 3 billion Extended Credit Facility (ECF) offered by the Fund. The effort aims to enhance Ghana’s financial system, foster higher lending to the private sector, and inspire market confidence.
The IMF is advising fiscal and monetary authorities to swiftly undertake measures to strengthen the financial sector exchange as well as to take other required actions, such as providing capital support to institutions that qualify.
Following the formal announcement that the ECF had received approval at the Executive Board level, the IMF emphasized the significance of prompt action in a Staff Report, stating: “Any capital support to qualifying institutions and other steps necessary to strengthen the financial sector exchange will be completed on time.
In order to comply with the deadlines established in the financial sector strategy, each of the 23 commercial banks in the country would be required to present dependable and time-sensitive plans to refill capital buffers as part of the proposed reforms. The Bank of Ghana (BoG) will review and approve these plans before the end of September 2023, marking a significant step forward in the structural reform process. These plans will be evaluated by the central bank and finalized by banks.
