The International Monetary Fund (IMF) is set to disburse $600 million to Ghana in November 2023, as part of a larger $3 billion support package under a 36-month Extended Credit Facility (ECF) arrangement. This announcement was confirmed by the IMF's Managing Director, Kristalina Georgieva, on Friday. The decision follows significant improvements in Ghana's economy and the government's successful adherence to agreed-upon criteria.
The IMF team, led by Stéphane Roudet, has reached an agreement on the first review of Ghana's ECF arrangement, pending IMF Management approval and financing assurances. Upon approval, Ghana will access Special Drawing Rights (SDR) 451.4 million ($600 million), raising total IMF support to SDR 902.8 million ($1,200 million) since May 2023.
Despite facing an economic crisis, Ghana has made substantial adjustments to its macroeconomic policies, restructured domestic debt, launched reforms, expanded social protection programs, and achieved non-oil revenue targets. Structural fiscal reforms are currently underway to enhance domestic revenues and transparency.
Ghana is also making strides in reducing its fiscal primary deficit and has stabilized inflation and the exchange rate. The country's growth in 2023 has been resilient with improved fiscal and external positions. The government has also managed to keep spending within program limits.
The next critical step for the nation is securing an agreement with official creditors on debt treatment consistent with IMF-approved program parameters and debt targets. The upcoming disbursement is seen as a confidence-building measure reflecting Ghana's newfound economic stability.
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