Ghana is poised to receive board approval from the International Monetary Fund (IMF) for the third tranche of $360 million as part of its $3 billion extended credit facility.
The government’s support program, designed to stabilize the economy and promote sustainable growth, is reportedly yielding results that exceed expectations.
So far, Ghana has received $1.2 billion in IMF funding, to aid fiscal consolidation, bolster foreign exchange reserves, and support general economic recovery.
The IMF observes that Ghana is approaching the approval stage for the next disbursement, as the nation consistently fulfills the required economic and policy criteria.
At a recent press conference in Washington, D.C., Julie Kozack, the Director of Communications at the IMF, expressed confidence in and support for Ghana’s progress.
“On April 13th, IMF staff and the Ghanaian authorities reached a staff-level agreement for the second review of the programme.
The aim is to bring the review to the IMF’s Executive Board before the end of June, and once approved by the Board, the review would give Ghana access to about $360 million. The authorities’ strong policy and reform efforts under the programme are bearing fruit, and signs of economic stabilization are emerging.”
Ghana anticipates approval for its third tranche of $360 million during the IMF Executive Board meeting in June, following a staff-level agreement on the second review of the loan-support program.
The IMF has clarified that no additional adjustments will be required from the Ghanaian government.
Government officials are optimistic that ongoing discussions among official creditors will expedite the conclusion of negotiations, leading to the disbursement of the third tranche of funds.
“Growth, for example, in 2023, was higher than anticipated, and the growth projections are being revised upward. Inflation has been declining rapidly, the fiscal and external positions have improved, and exchange rate volatility has declined quite significantly. The authorities are making good progress on their comprehensive debt restructuring. The domestic debt exchange was completed last year, and on January 12th, the government reached agreement in principle with its official bilateral creditors. Ghana is also engaging with external private creditors to seek their support”, Julie Kozack added.
