The International Monetary Fund (IMF) is expected to review Ghana’s second review programme for a third tranche of US$360 million by the end of June 2024. If approved, the disbursement will be made under the country’s Extended Credit Facility (ECF) programme for economic recovery and stability.
Julie Kovack, Director of the Communications Department at the IMF, confirmed the timeline during a press briefing on Thursday, June 6. She noted that the approval would bring the total disbursements to US$1.6 billion since May 2023.
The development comes after Ghana reached staff-level agreement on economic policies and reforms for the second review of the programme on April 13, 2024. The country has also received a draft Memorandum of Understanding (MoU) with its Official Creditors and reviewed it before signing it, formally ending negotiations with the creditors.
The IMF emphasized that steadfast policy and reform implementation are crucial to restore macroeconomic stability and debt sustainability in Ghana. Ghanaian authorities’ strong policy and reform efforts have borne fruit, with signs of economic stabilization emerging, including higher-than-expected growth in 2023.
The signing of the MoU and the disbursement of the US$360m third tranche are expected to stabilize the Cedi against major trading currencies, particularly the Dollar. The money will also boost Ghana’s foreign reserves, supporting the stability of the Cedi, according to Dr. Ernest Addison, Governor of the Bank of Ghana (BoG).
