Ghana has secured US$360 million from the International Monetary Fund (IMF) after the successful third review of the 36-month Extended Credit Facility Arrangement.
- •The approval by the IMF’s Executive board brings total disbursements under the arrangement to about US$1.9 billion since May 2023.
- •The IMF noted progress under the facility, citing recovering economic growth, declining inflation – although at a slower pace and the improvements in the fiscal and external positions.
- •Ghana faced a severe financial crisis in 2022, forcing the government to default on its external debt, negotiating a 3-year US$3 billion relief package from the IMF.
“The authorities’ economic strategy is delivering on its objectives, with the economy showing clear signs of stabilization,” Deputy Managing Director Bo Li said in a statement.
The Bretton woods institution said it expects Ghana’s GDP to grow by 4% this year and by 4.4% in 2025. Ghana had lost access to international markets post COVID – 19, following a drop in investor confidence fueled by elevated fiscal deficits and public debt levels coupled with the global monetary policy tightening.
The mounting pressures on domestic financing prompted the west african nation to turn to monetary financing by the central bank, which fed into declining foreign reserves, currency depreciation, and ballooning inflation.
“Steadfast implementation of the policy and reform agenda, including before and after the upcoming general elections, remains essential to fully restore macroeconomic stability and debt sustainability,” IMF said in a statement on Monday.
The disbursement comes as Ghana is headed for the polls on 7th December, to elect a new president to replace Nana Akufo-Addo. Vice President Mahamudu Bawumia, from Akufo-Addo’s ruling New Patriotic Party faces Former president John Dramani Mahama of the opposition National Democratic Congress party as the main challenger.