IMF Approves $360 Million Disbursement to Ghana Under Extended Credit Facility
The Executive Board of the International Monetary Fund (IMF) has approved a $360 million disbursement to Ghana under its $3 billion Extended Credit Facility (ECF). This marks the successful completion of Ghana’s third program review, as announced on Monday, December 2, 2024.
This latest tranche raises Ghana’s total receipts from the facility to $1.92 billion, with funds expected to be credited to the Bank of Ghana by the end of the week.
Progress Under the Program
The IMF noted in its statement that Ghana’s performance under the program has been “generally satisfactory,” citing significant advancements in economic recovery and reform implementation. Key highlights include:
- Debt Restructuring: Ghana has made strides in restructuring its public debt. Following the successful restructuring of domestic debt in 2023, the government reached a Memorandum of Understanding with the Official Creditors Committee under the G20 Common Framework in June 2024. Additionally, the exchange of Eurobonds has been completed in line with program parameters. Efforts are ongoing to restructure external commercial debt under comparable terms.
- Economic Indicators: Economic growth is recovering rapidly, while inflation, though declining, remains a challenge. The fiscal and external balances continue to improve.
- Monetary Policy and Financial Stability: The Bank of Ghana has maintained a prudent monetary policy to curb inflation risks and rebuild international reserves. Significant measures have been introduced to strengthen financial sector stability, including encouraging timely recapitalization of banks and starting the recapitalization of state-owned banks within available resources.
Path Ahead
The IMF praised Ghana’s commitment to reforms and encouraged the continuation of efforts to sustain economic gains. The ongoing engagement with external creditors and the strengthening of domestic financial institutions are expected to support the country’s path toward long-term financial stability and growth.
This approval reinforces international confidence in Ghana’s reform agenda and economic resilience, providing critical support as the nation works to secure a stable and sustainable recovery.
