The Executive Board of the International Monetary Fund (IMF) has approved a $360 million disbursement to Ghana under its $3 billion Extended Credit Facility (ECF). This decision follows the successful completion of Ghana’s third review under the program, announced on Monday, December 2, 2024.
The new disbursement raises Ghana’s total receipts from the ECF to $1.92 billion, with funds expected to be credited to the Bank of Ghana by the end of the week.
“Ghana’s performance under the program has been generally satisfactory, and reform efforts are paying off. Good progress has been made on debt restructuring. Growth is recovering rapidly, inflation has declined—albeit at a slower pace, and the fiscal and external positions have continued to improve,” the IMF stated in a release.
Progress on Debt Restructuring
The IMF praised Ghana’s significant strides in public debt restructuring. Following the successful domestic debt restructuring last year, the government reached a Memorandum of Understanding with Ghana’s Official Creditors Committee under the G20 Common Framework in June 2024. Recently, Ghana completed the exchange of Eurobonds under terms aligned with the program’s parameters.
Engagements with remaining external commercial creditors have also intensified, aiming for a restructuring that adheres to program benchmarks and ensures comparability of treatment.
Monetary Policy and Financial Sector Stability
The Bank of Ghana (BoG) has upheld a prudent monetary policy to facilitate a gradual reduction in inflation despite heightened risks. Efforts to rebuild international reserves have also advanced significantly.
Additionally, the BoG has implemented measures to strengthen financial sector stability, including intensified actions to promote timely recapitalization and initiatives to ensure the viability of banks. The government has begun recapitalizing state-owned banks in line with available resources.
This latest IMF support underscores Ghana’s commitment to implementing key reforms and achieving economic recovery amid challenging global and domestic conditions.
