IMF Reaches Staff-Level Agreement On Review Of Extended Credit Facility With Ghana


The International Monetary Fund (IMF) has announced a staff-level agreement on the second review of the extended credit facility with Ghana.

Once approved by IMF Management and completed by the IMF Executive Board, Ghana will have access to approximately US$360 million in financing.

The IMF praised Ghana’s strong performance under the program, citing positive economic growth, declining inflation rates, and significant improvements in both fiscal and external positions. These achievements are attributed to the authorities’ strong policy efforts and implementation of key reforms.

The staff team, led by Stéphane Roudet, Mission Chief for Ghana, held meetings in Accra from April 2-12, 2024, to discuss progress on reforms and the government’s policy priorities.
The extended credit facility program was approved by the IMF Executive Board in May 2023, providing a total amount of SDR 2.242 billion (US$3 billion).

In a statement, Mr. Roudet expressed his satisfaction with the staff-level agreement, highlighting Ghana’s commitment to restore macroeconomic stability and debt sustainability while fostering inclusive growth.

The country’s economic activity surpassed expectations in 2023, and growth projections for 2024 are expected to be revised upward. Tight monetary policy has effectively contributed to declining inflation rates.

On the fiscal front, the government has made significant progress in improving the fiscal primary balance, resulting in an expected fiscal primary surplus of ½ percent of GDP in 2024. The authorities have successfully managed spending within budget limits, expanded social protection programs, and achieved the non-oil revenue mobilization target. Furthermore, structural fiscal reforms have been implemented to strengthen domestic revenues, enhance public financial and debt management, and ensure transparency.

Ghana’s external sector has also shown improvement, with international reserve accumulation exceeding program objectives. The country has maintained financial stability, with banks reporting solid profits in 2023.

To ensure the timely completion of the review, Ghana needs to reach an agreement with its official bilateral creditors on a Memorandum of Understanding (MoU) for debt treatment, aligning with the preliminary agreement reached in January 2024.

The IMF staff team met with Finance Minister Amin Mohammed Adam, Bank of Ghana Governor Ernest Addison, and other government agencies during their visit to Accra. They expressed their gratitude to the Ghanaian authorities and other stakeholders for their continued cooperation and engagement.

Upon receiving the necessary financing assurances and the Executive Board’s review, Ghana will receive SDR 269.1 million (about US$360 million), bringing the total IMF financial support disbursed under the extended credit facility arrangement since May 2023 to SDR 1,171.9 million (about US$1,560 million).

By Vincent Kubi

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