The International Monetary Fund (IMF) is poised to approve the disbursement of $360 million to Ghana in early December, following the country’s successful completion of the third review under the Extended Credit Facility (ECF) program.
Julie Kozack, the IMF’s Director of Communications, confirmed this development during a press conference in Washington, D.C. “Once the review is completed by the IMF’s Executive Board, Ghana would have access to about $360 million in terms of disbursement,” she stated.
She further indicated that preparations are underway to finalize the process. “We are working. Our staff are working toward a board meeting in early December and will provide additional details on the precise date when we have them,” Kozack added.
Encouraging Progress Under the ProgrammeMs.
Kozack commended Ghana’s performance under the program, describing it as “encouraging.” She highlighted the nation’s significant strides in meeting the conditions necessary for debt restructuring, which remains a critical pillar of the IMF-backed reforms.
“What I can say in addition is that the programme performance has been good. There has been, in particular, remarkable progress on debt restructuring,” she noted.
Ghana’s macroeconomic indicators have also shown signs of recovery, exceeding expectations in some areas. According to Kozack, economic growth during the first half of 2024 outperformed projections, while inflation has eased, and both fiscal and external balances have shown marked improvement.
Looking Ahead: Sustaining the Gains
Despite these achievements, Kozack urged caution and emphasized the need for continued adherence to the reform agenda to ensure sustained recovery.
“Looking ahead, what will be important for Ghana will be continued implementation of the policy and reform agendas, especially given the difficult situation that many countries in the region and globally face,” she cautioned.
She stressed that full restoration of macroeconomic stability and debt sustainability would remain crucial to Ghana’s long-term economic health. “It remains essential to fully restore macroeconomic stability and debt sustainability,” Kozack said, adding that the IMF will provide further updates after the board meeting in December.
Background
This development follows an agreement reached on October 4, 2024, between IMF staff and the Ghanaian government on the economic policies and reforms required for the third review of the ECF arrangement. The upcoming disbursement is part of Ghana’s broader three-year, $3 billion program with the IMF aimed at stabilizing its economy and addressing the challenges posed by debt distress.
Ghana’s progress under the ECF has been widely regarded as a pivotal step toward restoring investor confidence and laying the foundation for sustained growth. The successful completion of this review underscores the nation’s commitment to implementing critical reforms and navigating its economic challenges effectively.
Story by: Mercy Addai Turkson
