IMF Approves $360 Million Disbursement to Ghana Under ECF Programme

The Executive Board of the International Monetary Fund (IMF) has approved a $360 million disbursement to Ghana, part of its $3 billion Extended Credit Facility (ECF) programme. The approval follows the successful completion of the third review of Ghana’s performance under the programme, as announced on Monday, December 2, 2024.

This latest disbursement brings Ghana’s total receipts under the ECF to $1.92 billion, with the funds expected to be credited to the Bank of Ghana by the end of the week.

Economic Progress Under the ECF

The IMF commended Ghana’s progress in economic recovery and reform efforts under the programme. In its statement, the Fund highlighted the following:

• Rapid Growth Recovery: Ghana’s economy is showing strong signs of recovery.
• Inflation Reduction: Inflation has declined, albeit at a slower pace than desired.
• Fiscal and External Improvements: The country’s fiscal and external positions have continued to strengthen.

Advancements in Debt Restructuring

Ghana has made notable progress in restructuring its public debt to align with programme objectives:

• Domestic Debt: The government successfully restructured domestic debt last year.
• Official Creditors Agreement: A Memorandum of Understanding was reached with the Official Creditors Committee under the G20 Common Framework in June 2024.
• Eurobond Exchange: Ghana completed an exchange of Eurobonds under conditions consistent with programme parameters.
• External Commercial Creditors: Ongoing discussions aim to ensure restructuring aligns with programme goals and comparability of treatment.

Strengthening Monetary and Financial Stability

The Bank of Ghana (BoG) has implemented prudent monetary policies to:

• Support inflation reduction efforts.
• Rebuild international reserves amidst global and domestic risks.

In addition, measures to stabilize the financial sector include:

• Encouraging timely recapitalization of banks.
• Recapitalizing state-owned banks within available resources.
• Enhancing the viability of financial institutions through robust regulatory actions.

Building Investor Confidence

The IMF’s endorsement reflects Ghana’s commitment to fiscal discipline, economic reforms, and effective debt management. The disbursed funds are expected to bolster economic recovery and reinforce investor confidence as Ghana continues to work towards sustainable and inclusive growth.

Source: GhanaFeed.Com