Ghana nears approval for $360 million IMF disbursement amid economic stabilization

Ghana is poised to secure board approval from the International Monetary Fund (IMF) for a third tranche of $360 million from its $3 billion extended credit facility.

This marks a significant step in the government's efforts to stabilize the economy and promote sustainable growth, which are reportedly yielding better-than-expected results.

To date, Ghana has received $1.2 billion from the IMF, which has been instrumental in aiding fiscal consolidation, boosting foreign exchange reserves, and supporting overall economic recovery.

The IMF has acknowledged that Ghana is close to meeting the necessary economic and policy benchmarks for the next disbursement.

Julie Kozack, Director of Communications at the IMF, expressed confidence in Ghana's progress during a recent press conference in Washington, D.C.

“On April 13th, IMF staff and the Ghanaian authorities reached a staff-level agreement for the second review of the programme,” she stated. “The aim is to bring the review to the IMF’s Executive Board before the end of June. Once approved, Ghana would gain access to about $360 million. The authorities’ strong policy and reform efforts under the programme are bearing fruit, and signs of economic stabilization are emerging.”

The anticipated approval of the third tranche in June follows this staff-level agreement, highlighting Ghana’s adherence to the required economic measures. The IMF has confirmed that no additional adjustments will be demanded from the Ghanaian government at this stage.

The Ghanaian government remains optimistic, noting that ongoing discussions among official creditors will likely facilitate the conclusion of talks, thereby enabling the release of the third tranche of funds.

Julie Kozack further noted, “Growth in 2023 exceeded expectations, prompting upward revisions in growth projections. Inflation is rapidly declining, fiscal and external positions have improved, and exchange rate volatility has significantly decreased.

"The authorities are making good progress on their comprehensive debt restructuring. The domestic debt exchange was completed last year, and on January 12th, the government reached an agreement in principle with its official bilateral creditors. Ghana is also engaging with external private creditors to seek their support.”

As Ghana continues on its path of economic reform and stabilization, the anticipated IMF support will be crucial in sustaining this positive momentum.