The Executive Board of the International Monetary Fund (IMF) has completed the second review of Ghana’s 36-month Extended Credit Facility (ECF) Arrangement, allowing for an immediate disbursement of $360 million.
This brings Ghana’s total disbursements under the ECF arrangement to about $1.6 billion.
According to the statement by the IMF on Friday, Ghana’s performance criteria for the second review and almost all indicative targets were met.
It added that Ghana is making good progress on debt restructuring and key structural reforms are advancing.
The IMF commended Ghana’s authorities for their reform efforts, noting that growth has been more resilient than expected, inflation has declined rapidly from its 2022 highs, and fiscal and external positions have significantly improved.
The Ghanaian government was commended for its comprehensive debt restructuring efforts.
The report by Daily Graphic on Monday recalled that on June 11, 2024, an agreement was reached with Ghana’s Official Creditor Committee under the G20’s Common Framework on a Memorandum of Understanding (MoU), formalizing a debt treatment agreement in principle from January 2024.
This agreement provided the necessary financing assurances for the completion of the second review under the ECF Arrangement. Additionally, Ghana has reached an agreement in principle with representatives of Eurobond holders on a restructuring consistent with programme parameters.
Ghana’s primary fiscal balance improved by over 4 per cent of GDP last year. Looking ahead, the authorities are committed to further advancing fiscal consolidation, aiming for primary fiscal surpluses of 0.5% of GDP this year and 1.5% of GDP in 2025. These efforts are supported by reforms to bolster revenue mobilization, streamline non-priority expenditures, and expand social protection programs to mitigate the impact of fiscal adjustments on the most vulnerable.
GIK/APA