Ghana is making strides toward securing board approval from the International Monetary Fund (IMF) for the third tranche of $360 million under its $3 billion extended credit facility.

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The government's ongoing support program, aimed at stabilizing the economy and fostering sustainable growth, is yielding better-than-expected results.

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To date, Ghana has received $1.2 billion in IMF funding, which has aided fiscal consolidation, bolstered foreign exchange reserves, and supported general economic recovery.

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The IMF acknowledges Ghana's progress toward the next disbursement, noting that the country continues to meet necessary economic and policy benchmarks.

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Julie Kozack, Director of Communications at the IMF, spoke about Ghana's status during a recent press conference in Washington, D.C., expressing confidence and support from the IMF.

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Ghana is poised to receive approval for its third tranche of $360 million when the IMF Executive Board convenes in June, following a staff-level agreement on the second review of the loan-support program.

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The Fund has indicated that additional adjustments will not be required from the Ghanaian government.

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The government is hopeful that ongoing discussions among official creditors will lead to the conclusion of talks, facilitating the release of the third tranche of funds.

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Julie Kozack also highlighted positive economic indicators, such as higher-than-anticipated growth in 2023, declining inflation, improved fiscal and external positions, and reduced exchange rate volatility.

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She noted Ghana's progress on comprehensive debt restructuring efforts, including engagements with official bilateral and external private creditors.

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“On April 13th, IMF staff and the Ghanaian authorities reached a staff-level agreement for the second review of the programme. The aim is to bring the review to the IMF’s Executive Board before the end of June, and once approved by the Board, the review would give Ghana access to about $360 million. The authorities’ strong policy and reform efforts under the programme are bearing fruit, and signs of economic stabilization are emerging.”

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“Growth, for example, in 2023, was higher than anticipated, and the growth projections are being revised upward. Inflation has been declining rapidly, the fiscal and external positions have improved, and exchange rate volatility has declined quite significantly. The authorities are making good progress on their comprehensive debt restructuring. The domestic debt exchange was completed last year, and on January 12th, the government reached agreement in principle with its official bilateral creditors. Ghana is also engaging with external private creditors to seek their support”, Julie Kozack added.

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