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‘Your programme performance generally satisfactory’ – IMF commends Ghana

 


The International Monetary Fund (IMF) has praised Ghana for its strong performance under the fund program.

This it says is attributable to the progress made in debt restructuring, economic recovery and financial stability which signals a positive outlook for the country’s economic and business climate.

The IMF made this assessment after its Executive Board approved $360 million as the fourth disbursement to Ghana under the $3 billion Extended Credit Facility (ECF).

It followed the successful completion of the third review of program.

The IMF commended Ghana’s performance citing progress in debt restructuring, economic recovery, fiscal and external improvements.

It also highlighted the completed domestic and eurobond debt restructuring  and ongoing negotiations with external creditors which it says align with the parameters of the program.

In a release it mentioned that “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—although at a slower pace, and the fiscal and external positions have continued to improve”.

That was not all, the IMF praised the Bank of Ghana for maintaining a prudent monetary policy stance to curb inflation, rebuild reserves, and support financial stability at a time the government is recapitalizing state-owned banks to ensure their viability.

This approval brings total disbursements to $1.92 billion. The funds are expected to be credited to the Bank of Ghana’s account by end of this week.

The statement added that the “Ghanaian authorities have continued to make remarkable headways on their public debt restructuring. After successfully restructuring domestic debt last year and reaching an agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June 2024, the government has completed the exchange of its Eurobonds at conditions consistent with program parameters.

The authorities have also intensified engagement with their remaining external commercial creditors on a restructuring in line with program parameters and comparability of treatment.”

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