Ghana will not be able to currently access the $3billion in its new three-year arrangement under the Extended Credit Facility (ECF) with the International Monetary Fund (IMF) despite reaching a Staff-Level Agreement.

IMF’s Mission for Ghana, Stéphane Roudet, has explained that the money can only be released to the government of Ghana after the Staff-Level Agreement has been presented to the Fund’s Management and Executive Board.

Subsequently, the Executive Board would have to approve the Staff-Level Agreement before funds are disbursed.

Providing clarity to the current status of engagements between Ghana and the Fund on Tuesday, December 13, Mr Roudet mentioned that government must first prove that “the programme is fully financed” and the “fiscal consolidation path, comprehensive debt restructuring that the authorities have launched will be sufficient to re-establish debt sustainability”  before the Staff-Level Agreement can be presented.

Ghana has launched a Domestic Debt Exchange to help tackle its debt. Some interests on investments; bonds, particularly for 2023 have been scrapped under the debt exchange programme.

Mr Stéphane Roudet on Monday, December 12, announced that Ghana and the IMF have reached a Staff-Level Agreement on economic policies and reforms.

The economic recovery programme, among others, aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.

This comes after a six-month engagement between the Fund and government.

Ghana officially reached out to the Fund in July this year after realizing its economy is in a deplorable state due to extensive borrowing, Covid-19 and the Russia-Ukraine war.

IMF staff held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, and their teams, as well as representatives from various government agencies.

The IMF team led by Stéphane Roudet, which arrived in Accra on December 1, ended their negotiations with the government on December 13.

Source: The Independent Ghana