The International Monetary Fund (IMF) has approved the final disbursement of about $371 million to Ghana, marking the completion of the country's $3 billion support programme. This decision follows a sixth and final review by the IMF, which deemed Ghana's performance under the programme 'broadly satisfactory'. Key achievements include stronger fiscal performance, increased foreign reserves, and significant progress in restructuring public debt.
Ghana's Economic Challenges
Ghana sought IMF assistance in 2022 amid severe economic turmoil, exacerbated by the Covid-19 pandemic and the war in Ukraine. The country faced spiralling debt, soaring inflation, and a plunging currency. The $3 billion programme, approved in May 2023, aimed to stabilize the economy and restore confidence among investors.
Progress and Future Steps
The IMF highlighted Ghana's comprehensive debt restructuring efforts, noting that the risk of debt distress has returned to moderate levels. The country has signed debt relief agreements with more than half of its bilateral creditors and continues negotiations with external commercial creditors. Ghana will now transition to a non-financing Policy Coordination Instrument (PCI) with the IMF, which supports reforms and policy credibility without providing funding.
Despite the positive assessment, Ghana breached a programme target by exceeding the ceiling on credit extended to the government and public entities. The IMF granted a waiver for this breach, acknowledging it as an isolated incident. Finance Minister Cassiel Ato Forson emphasized the overall progress made in restoring economic stability, including fiscal discipline, reduced inflation, and strengthened external buffers.
