The Executive Board of the International Monetary Fund (IMF) has successfully completed the third review of Ghana’s $3 billion Extended Credit Facility (ECF) program, which began in May 2023.

This review clears the way for Ghana to receive an additional Special Drawing Rights (SDR) of 269.1 million, equivalent to about $360 million. With this latest disbursement, the total amount Ghana has received under the program now stands at approximately $1.9 billion.

The IMF acknowledged that Ghana’s efforts at economic reform and policy adjustments are yielding positive results. Deputy Managing Director Bo Li highlighted that the country’s economic plan is meeting its targets, with improvements noted in areas such as economic growth and fiscal management.

“The economy is showing clear signs of stabilisation,” Li said.

The program has provided a framework for macroeconomic policy adjustments and significant reforms aimed at restoring stability, ensuring debt sustainability, and fostering inclusive growth. Key achievements highlighted include:

Macroeconomic Recovery: Despite challenges, Ghana has seen rapid growth recovery, declining inflation (albeit slower than anticipated), and improved fiscal and external positions.

Public Debt Restructuring: Ghana successfully restructured its domestic debt and Eurobonds in line with program parameters. Engagements with external creditors for further restructuring remain ongoing.

Fiscal discipline: The government has achieved a primary surplus of 0.5% of GDP and is targeting a 1.5% surplus by 2025. These goals will rely on domestic revenue mobilisation, rationalising non-priority expenditures, and expanding social support programs for vulnerable groups.

The Bank of Ghana’s careful approach to monetary policy has helped lower inflation and rebuild the country’s international reserves.

To strengthen the financial sector, steps have been taken to support the recapitalisation of banks and improve the stability of both state-owned and private financial institutions.

Deputy Managing Director Bo Li stressed the need for Ghana to continue implementing reforms to address key challenges, particularly in areas like energy and cocoa. He also highlighted the importance of reinforcing the country’s fiscal policies for long-term stability.

“Staying the course of fiscal policy adjustment before and after the elections is paramount,” Li stressed, adding that this would support social programs and enhance the country’s economic resilience.