IMF Releases $360 Million to Ghana Following Second Review

The International Monetary Fund (IMF) Executive Board has completed the second review of Ghana’s 36-month Extended Credit Facility (ECF) Arrangement, approving an immediate disbursement of $360 million. This brings Ghana’s total disbursements under the ECF to approximately $1.6 billion.

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In a statement issued recently, the IMF acknowledged Ghana’s strong performance under the program, noting that all quantitative performance criteria for the second review and nearly all indicative targets were met. The country has made significant strides in debt restructuring, with key structural reforms also advancing.

The IMF praised Ghanaian authorities for their reform efforts, highlighting that economic growth has proven more resilient than anticipated, inflation has markedly decreased from its peak in 2022, and fiscal and external positions have notably improved. The government’s comprehensive efforts in debt restructuring were particularly commended.

Deputy Managing Director Kenji Okamura emphasized the importance of continuing macroeconomic policy adjustments and reforms, especially during the upcoming electoral period, to fully restore macroeconomic stability, ensure debt sustainability, and foster sustainable economic growth and poverty reduction.

The IMF stressed several critical areas for Ghana’s economic agenda, including enhancing domestic revenue mobilization, optimizing public spending, and finalizing comprehensive debt restructuring. Improving tax administration, managing expenditures, addressing arrears, strengthening fiscal rules and institutions, and enhancing management of state-owned enterprises were highlighted as key priorities.

The IMF also underscored the importance of implementing banks’ recapitalization plans and enhancing financial sector stability, along with reforms aimed at fostering private sector development to promote inclusive growth and poverty reduction. Additionally, recalibrating Ghana’s National Development Policy Framework to effectively address socio-economic impacts post-COVID-19 was recommended to ensure policy interventions remain effective.

Source GRAPHIC ONLINE

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