IMF reaches staff-level agreement for 2nd review

Ghana has secured $360 million from the International Monetary Fund (IMF) pending approval by the Fund’s Board.

This funding comes after reaching a Staff-Level agreement for the second review of the extended credit facility. The agreement was reached during meetings in Accra led by Stéphane Roudet, the IMF’s Mission Chief for Ghana, from April 2-12.

The total amount approved by the IMF Executive Board under the Extended Credit Facility is $3 billion, with $360 million being made available pending approval by the Executive Board. This brings the total IMF financial support disbursed under the arrangement since May 2023 to about $1,560 million.

Mr. Roudet highlighted Ghana’s strong performance under the IMF-supported program, noting that most quantitative targets have been met and progress has been made on key structural reforms. He also mentioned that economic activity was better than expected in 2023 and growth projections for 2024 are expected to improve.

On the fiscal front, Ghana has shown improvement in its fiscal primary balance and is on track to achieve a fiscal primary surplus in 2024. Spending has remained within budget limits, and social protection programs have been expanded to support the most vulnerable.

The IMF team praised Ghana’s efforts and expressed gratitude for the open and constructive engagement with the authorities and other stakeholders. The next step for Ghana is to reach an agreement with official bilateral creditors in line with the terms agreed in January 2024.