IMF reach staff-level agreement with Ghana for US$3 billion bailout as cedi make gains against US Dollar

IMF staff and Ghanaian authorities reach staff-level agreement on economic policies and reforms of $3 billion for three-year Extended Credit Facility (ECF).

According to de IMF, dia support to Ghana dey target restoring macroeconomic stability and debt sustainability while protecting de vulnerable, preserving financial stability den laying de foundation for strong recovery.

Stéphane Roudet, Mission Chief for Ghana talk say de monies for de bailout go hit Ghana as soon as dem get Executive level agreement.

“De staff-level agreement dey subject to IMF Management and Executive Board approval den receipt of de necessary financing assurances by Ghana’s partners and creditors,” Stéphane Roudet add.

The IMF has reached a staff-level agreement with Ghana on a three-year arrangement of about $3 billion to support the country’s s Post-COVID-19 Program for Economic Growth.

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Ghana govment go IMF for bailout in July 2022 after living costs continue to dey rise in de country.

President Akufo-Addo direct Finance Minister, Ken Ofori-Atta to start formal engagements plus de International Monetary Fund to support govment economic program. 

Reforms IMF dey propose

Ghanaian authorities as part of de economic reform programme, govment for tackle some of de challenges with de following key reforms:

Ensure sustainability of public finances while protecting the vulnerable. 

Introduction of Structural reforms to support fiscal strategy den ensure durable consolidation.

Reduce inflation, enhance resilience to external shocks den improve market confidence also be key to de program priorities.

Also, Bank of Ghana for strengthen dia monetary policy framework den promote exchange rate flexibility to rebuild external buffers.

Ghana cedi start dey make gains against US Dollar

Meanwhile, de Ghana cedi start dey make gains against de US dollar consistently in de last week.

Dis new development dey happen after govment launch dia Debt Exchange Programme as part of dia plans to pave way for IMF bailout.

De cedi dey trade at Ghc14.20 to $1 dollar in de first week of December, but after de launch of de Debt Exchange Programme de cedi stabilize and currently dey trade at Ghc12.43 to $1 dollar.

According to some analysts, de boost de cedi dey enjoy be sake of investors start dey feel confident say Ghana and IMF go reach Staff-Level agreement.