IMF praises Ghana’s overall programme performance as satisfactory

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The International Monetary Fund (IMF) has commended Ghana for its strong performance under the fund’s program, citing notable progress in debt restructuring, economic recovery, and financial stability. These achievements signal a positive outlook for the country’s economic and business environment.

The IMF’s assessment follows the approval of a $360 million disbursement as the fourth installment of Ghana’s $3 billion Extended Credit Facility (ECF), which came after the successful completion of the third program review.

The IMF praised Ghana’s advancements in debt restructuring, fiscal management, and external position improvements. The completed domestic and eurobond debt restructuring, along with ongoing negotiations with external creditors, were highlighted as aligning with the program’s objectives.

In a statement, the IMF noted, “Ghana’s performance under the program has been generally satisfactory, and reform efforts are paying off. Progress has been made on debt restructuring, growth is recovering rapidly, inflation is declining—albeit slowly—and fiscal and external positions continue to improve.”

Additionally, the IMF commended the Bank of Ghana for its prudent monetary policy to curb inflation, rebuild reserves, and support financial stability, while the government works to recapitalize state-owned banks.

This approval brings total disbursements to $1.92 billion, with the funds expected to be credited to the Bank of Ghana’s account by the 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.”