The International Monetary Fund (IMF) has lauded Ghana for its commendable performance within the framework of the fund’s program.
This recognition is attributed to advancements in debt restructuring, economic recovery, and financial stability, which collectively indicate a favorable outlook for the nation’s economic and business environment.
The IMF’s evaluation followed the approval of a $360 million disbursement as the fourth installment to Ghana under the $3 billion Extended Credit Facility (ECF). This decision came after the successful completion of the third program review.
The IMF acknowledged Ghana’s achievements, noting significant progress in debt restructuring, economic recovery, and improvements in both fiscal and external conditions. It also emphasized the successful completion of domestic and eurobond debt restructuring, along with ongoing discussions with external creditors, which align with the program’s objectives.
In its announcement, the IMF stated that “Ghana’s performance under the program has been generally satisfactory, and reform efforts are yielding positive results. Notable progress has been made in debt restructuring. Economic growth is rebounding swiftly, inflation has decreased—albeit at a gradual rate—and both fiscal and external positions continue to show improvement.”
Furthermore, the IMF commended the Bank of Ghana for its prudent monetary policy approach aimed at controlling inflation, rebuilding reserves, and ensuring financial stability, particularly as the government undertakes the recapitalization of state-owned banks to secure their sustainability.
This latest approval raises the total disbursements to $1.92 billion, with the funds anticipated to be deposited into the Bank of Ghana’s account by the end of this week.
The statement further noted that “the Ghanaian authorities have made significant strides in their public debt restructuring efforts. Following the successful restructuring of domestic debt last year and the establishment of a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June 2024, the government has finalized the exchange of its Eurobonds under conditions that are consistent with the program.”
The authorities have increased their efforts to engage with the remaining external commercial creditors regarding a restructuring that aligns with program parameters and ensures equitable treatment.
