IMF approves third review of the ECF programme

Government is glad to learn that the IMF Board is satisfied with the developments made by Ghana, and has approved the third review of the ECF programme.

“The approval is a further confirmation of the economic turnaround story,” Seth Terkper, Minister for Finance, said after the IMF Executive Board met on Wednesday 28th September, 2016, and approved Ghana's economic performance, under the Third Review.

The Minister added: “The government would like to express its gratitude to all Ghanaians, and especially, the Parliament of Ghana, for their continued support during this time.”

Looking forward, he said, the government will continue its effort at fiscal consolidation, and not be complacent with the present good news. In this vein, the government will continue to contain expenditures, whilst mobilising domestic revenue.

“The prospect ahead is even brighter, with the coming on board of the utilisation of the Policy Risk Guarantee, to bring investments into the economy, especially the oil and gas sectors. The use of the integration of the oil and gas to the other sectors of the economy, especially, fertiliser development for the agriculture sector and bitumen production for road infrastructure,” he said.

This approval comes after the IMF Mission to Ghana in April/May 2016, the effort to meet the prior actions before the IMF Board date, and the follow up IMF Mission from 29th August to 2nd September, 2016 to update the data used in the review.

To expedite action towards the ultimate completion of the Third Review by satisfying these new prior actions, several of which are structural in nature, the government gave the completion of these activities its top priority.

Prior to this development, the government had secured an oversubscribed Eurobond – one of the only sovereigns in Africa to have done that in 2016.

This attracted global investors, amidst the successful tender offer, with the utilisation of the balances in the Sinking Fund account.