IMF bailout: Board approves disbursement of $360m to Ghana

On Friday, June 28, the executive board of the International Monetary Fund (IMF) authorized the second evaluation of Ghana’s US$3 billion loan program.

The most recent clearance permits the government to receive an immediate payout of US$360 million to support economic recovery.

The decision was made subsequent to the nation concluding negotiations with its official creditor committee, an action that was necessary in order to release the second tranche.

With the current tranche, the IMF will have paid out roughly US$1.6 billion in total throughout the course of the three-year bailout program intended to assist Ghana in overcoming its economic difficulties.

“Ghana’s economic reform programme is delivering on its objectives. Following acute economic and financial pressures in 2022, the Fund-supported program has provided a credible anchor for the government to adjust macroeconomic policies and implement reforms to restore macroeconomic stability and debt sustainability, while laying the foundations for higher and more inclusive growth” IMF stated in a statement  issued on Friday 28 June, 2024.

“These efforts are paying off, with growth proving more resilient than initially expected, inflation declining at a faster pace, and the fiscal and external positions improving. The medium-term outlook remains favorable but subject to downside risks—including those related to the upcoming general elections,” the statement added.

According to the Bretton Woods Institution the country’s performance under the programme has been generally strong.

“All quantitative performance criteria for the second review and almost all indicative targets were met. Good progress has also been made on the key structural reform milestones, despite some delays,” the statement added.

“The Ghanaian authorities have also continued to make progress on their comprehensive debt restructuring,” according to the IMF.

Ghana and its Official Creditor Committee (OCC) signed a Memorandum of Understanding (MoU) on June 11, 2024, formalizing the January 2024 agreement in principle on a debt treatment. This agreement was made possible by the G20’s Common Framework.

The completion of the second review under the ECF Arrangement was made possible by the funding assurances provided by this agreement on a debt treatment that complied with program parameters.

Source: Ghanatodayonline.com