On Friday, June 28, the executive board of the International Monetary Fund (IMF) authorised the second evaluation of Ghana’s US$3 billion loan programme.
The most recent clearance permits the government to receive an immediate payout of US$360 million to support economic recovery.
The decision was made subsequent to the nation concluding negotiations with its official creditor committee, an action that was necessary in order to release the second tranche.
With the current payment, the IMF will have paid out around US$1.6 billion in total throughout the course of the three-year bailout plan intended to assist Ghana in overcoming its economic difficulties.
The IMF stated in a statement on Friday, June 28, that Ghana’s economic reform strategy is meeting its goals. The Fund-supported programme has given the government a reliable anchor to modify macroeconomic policies and carry out reforms to restore macroeconomic stability and debt sustainability, while laying the groundwork for faster and more inclusive growth, in the wake of severe economic and financial pressures in 2022.
“These initiatives are bearing fruit; GDP is proving more robust than first anticipated, inflation is dropping more quickly, and the external and fiscal conditions are getting better. The statement went on, “The medium-term picture is still positive, but there are dangers to the downside, notably those associated with the next general elections.
“These initiatives are bearing fruit; GDP is proving more robust than first anticipated, inflation is dropping more quickly, and the external and fiscal conditions are getting better. The statement went on, “The medium-term picture is still positive, but there are dangers to the downside, notably those associated with the next general elections.
The nation has typically performed well under the scheme, according to the Bretton Woods Institution.
“Almost all indicative objectives and all quantitative performance criteria for the second review were met. Notwithstanding occasional delays, significant progress has also been made on the major structural reform benchmarks, the statement continued.
“The Ghanaian authorities have also continued to make progress on their comprehensive debt restructuring,” according to the IMF.
Ghana and its Official Creditor Committee (OCC) signed a Memorandum of Understanding (MoU) on June 11, 2024, formalising the January 2024 agreement in principle on a debt treatment. This agreement was made possible by the G20’s Common Framework.
The completion of the second review under the ECF Arrangement was made possible by the funding guarantees given by this agreement on a debt treatment that complied with programme objectives.