Ghana is making significant strides towards securing board approval from the International Monetary Fund (IMF) for the third tranche of $360 million from its $3 billion extended credit facility.
The government’s ongoing support program, aimed at stabilizing the economy and fostering sustainable growth, is yielding better-than-expected results.
To date, Ghana has received $1.2 billion in IMF funding, which has contributed to fiscal consolidation, bolstering foreign exchange reserves, and supporting overall economic recovery.
According to Julie Kozack, Director of Communications at the IMF, Ghana is earning the IMF’s confidence and backing. She highlighted Ghana’s progress during a recent press conference in Washington, D.C.
“On April 13th, IMF staff and the Ghanaian authorities reached a staff-level agreement for the second review of the programme. The aim is to bring the review to the IMF’s Executive Board before the end of June, and once approved by the Board, the review would give Ghana access to about $360 million. The authorities’ strong policy and reform efforts under the programme are bearing fruit, and signs of economic stabilization are emerging.”
Ghana anticipates approval for the third tranche of $360 million when the IMF Executive Board convenes in June, following the staff-level agreement on the second review of the loan-support program.
The IMF has clarified that the fund will not necessitate additional adjustments from the Ghanaian government. The government remains hopeful that ongoing discussions among official creditors will conclude positively, facilitating the release of the third tranche of funds.
“Growth, for example, in 2023, was higher than anticipated, and the growth projections are being revised upward. Inflation has been declining rapidly, the fiscal and external positions have improved, and exchange rate volatility has declined quite significantly. The authorities are making good progress on their comprehensive debt restructuring. The domestic debt exchange was completed last year, and on January 12th, the government reached agreement in principle with its official bilateral creditors. Ghana is also engaging with external private creditors to seek their support”, Julie Kozack added.
