The International Monetary Fund (IMF) and Ghanaian authorities have reached a consensus on economic policies and reforms as part of the first review of the three-year Extended Credit Facility (ECF) program. The agreement, announced on Friday, is pending approval from the IMF's Executive Board and financing assurances.
Ghana's robust performance towards program targets could potentially unlock $600 million in financing upon review approval by the IMF Executive Board. The country has showcased signs of economic stabilization, including resilient growth in 2023, declining inflation, improved fiscal and external positions, and a stable exchange rate. These results are a testament to the authorities' dedication to policy and reforms.
The nation is on track to lower its fiscal primary deficit by about 4 percentage points of GDP in 2023 due to strong fiscal performance. Social protection programs have been expanded to protect vulnerable populations from the crisis impact. Furthermore, Ghana met its non-oil revenue mobilization target, and structural fiscal reforms are enhancing domestic revenues, spending efficiency, public financial management, and transparency.
An IMF team led by Mr. Stéphane Roudet held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison during the 2023 Article IV consultation regarding the SDR 2.242 billion ($3 billion) arrangement.
A successful domestic debt restructuring operation was completed, with IMF financial support since May 17, 2023 amounting to SDR 451.4 million (about $600 million). The agreement with official creditors on debt treatment consistent with IMF-approved program parameters is crucial for continued progress.
The positive results are evidence of the success of the $3 billion arrangement approved by the IMF Executive Board on May 17, 2023. The IMF has applauded Ghana’s policy commitment that has led to this economic stabilization.
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