The International Monetary Fund (IMF) and Ghana have reached a staff-level agreement on the third review of Ghana’s US$3 billion extended credit facility.
This comes after Ghana recently achieved 98% participation and consent solicitation from Eurobond holders in the restructuring of the country’s external debt.
According to the IMF Mission Chief for Ghana, Stéphane Roudet, performance under the IMF-supported programme has been generally satisfactory.
Additionally, all end-June 2024 quantitative targets were met, and progress on key structural reforms has continued, notwithstanding delays in a few areas.
Addressing the press on Friday, October 4, 2024, Stéphane Roudet said, “The IMF staff and Ghanaian authorities have reached a staff-level agreement on the third review of Ghana’s economic program under the Extended Credit Facility arrangement.”
“Performance under the IMF-supported program has been generally satisfactory. All end-June 2024 quantitative targets were met, and progress on key structural reforms has continued notwithstanding delays in a few areas. The authorities’ policy and reform efforts under the program have continued to deliver encouraging results,” he added.
To help stabilise the economy, the government, as part of measures to tame high inflation, announced on July 1, 2022, its decision to seek a $3 billion financial bailout programme from the International Monetary Fund (IMF).
Subsequently, a team from the IMF arrived in the country from July 6 to July 13, 2022, to engage with Ghanaian authorities for a possible economic support program.
A staff-level agreement between the Government of Ghana and the IMF was reached in December 2022.
On May 17, 2023, the IMF's executive board approved Ghana's $3 billion loan facility.
The first tranche of $600 million was received by the Bank of Ghana (BoG) on Friday, May 19, 2023.
In January 2024, the second tranche of $600 million was disbursed to Ghana as part of a three-year bailout program, a week after the nation reached a deal with bilateral creditors to restructure its debt.
In July this year, the government received US$360 million as the third tranche of Ghana’s bailout package with the International Monetary Fund (IMF).
The cash, meant for budget support and stabilisation of the local currency, was officially credited to the Central Bank’s account on Tuesday, July 2, 2024.
It follows the Executive Board’s approval of the second review last Friday, June 28, 2024.
This means Ghana has received a total of US$1.56 billion out of the $3 billion approved under the three-year extended credit facility.
The IMF programme, according to the government, is aimed at restoring macroeconomic stability and safeguarding debt sustainability, among many other objectives.
SA/ADG
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