The International Monetary Fund (IMF) Executive Board has approved a $360 million disbursement to Ghana under its $3 billion Extended Credit Facility (ECF) programme, following the successful completion of the third review of Ghana’s performance.
This brings the total disbursement to $1.92 billion since the programme began, with funds expected to be credited to the Bank of Ghana by the Fund.
This was announced by the Minister for Finance, Dr. Mohammed Amin Adam at a Monthly Press briefing where he indicated that, the IMF commended Ghana for significant strides in economic recovery and reforms, noting improvements in growth, inflation, and fiscal stability.
“Ghana’s performance under the programme has been generally satisfactory, and reform efforts are paying off. Growth is recovering rapidly, inflation has declined—though at a slower pace—and fiscal and external positions have improved,” the IMF stated.
Debt Restructuring Milestones
Ghana’s progress in public debt restructuring was highlighted, with notable achievements including, Domestic Debt Restructuring which was successful last year, Official Creditors Agreement which has reached a Memorandum of Understanding with the Official Creditors Committee under the G20 Common Framework in June 2024, the Eurobond Exchange: Completing the exchange of Eurobonds under conditions aligned with program parameters and the External Commercial Creditors with ongoing discussions to ensure alignment with program conditions.
Monetary and Financial Stability
According to the Minister, the Bank of Ghana (BoG) continues to implement prudent monetary policies to reduce inflation and rebuild international reserves.
Financial sector stability has been bolstered through measures such as recapitalization of banks and enhanced regulatory actions to ensure viability.
He highlighted Ghana’s restored macroeconomic stability and accelerated growth, with GDP reaching 6.9% in Q2 2024, the highest in five years.
The Minister attributed this success to strong performances in the industrial, agricultural, and ICT sectors.
Inflation dropped from 54.1% in December 2022 to 22.1% in October 2024, while external reserves improved to $7.7 billion, covering 3.5 months of imports. Additionally, the government’s successful Eurobond restructuring reduced the public debt-to-GDP ratio from 79.2% in September to 74.6% in October 2024.
Social interventions were also emphasized, including a 141% increase in beneficiaries of the Ghana School Feeding Programme and a doubling of benefits under the LEAP program. Free dialysis services and expanded coverage under the NHIS were also introduced.
Dr. Amin Adam commended Ghanaians for their resilience during economic challenges, urging them to safeguard the progress as the country approaches elections on 7th December 2024.
“We have built back better, and we remain on a strong positive trajectory,” he stated, while calling for peaceful and informed voting to sustain political stability and economic growth.