- IMF agrees on Ghana's $3B credit facility review
- Ghana restructures 98% of external debt
- IMF praises Ghana's economic progress
- $360M fourth tranche pending IMF Board approval
The International Monetary Fund (IMF) and Ghana have reached a significant milestone in their economic partnership. After a thorough assessment, the two parties have concluded a staff-level agreement on the third review of Ghana’s $3 billion extended credit facility.
This development follows a two-week mission by an IMF team to Ghana, where they evaluated the country’s fiscal data and progress against targets and structural benchmarks as of June 2024. The review aimed to assess Ghana’s performance under the IMF-supported program.
According to Stéphane Roudet, IMF mission staff to Ghana, “programme performance has been generally satisfactory.” This endorsement acknowledges Ghana’s efforts to implement economic reforms and stabilize its economy.
A key area of progress highlighted by the IMF is Ghana’s remarkable strides in debt restructuring. The country recently achieved an impressive 98% participation and consent solicitation from Eurobond holders. This milestone is a crucial step towards restructuring Ghana’s external debt.
Ghana’s debt restructuring efforts began with the successful restructuring of domestic debt last year. This was followed by the agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework in June.
The IMF has praised Ghana’s commitment to pursuing good-faith efforts to reach agreements with commercial external creditors. This aligns with program parameters and the comparability of treatment principles, ensuring a cohesive approach to debt management.
The staff-level agreement is subject to approval by the IMF Board, which will unlock the fourth tranche of $360 million. This disbursement will bring Ghana’s total receipts under the extended credit facility to $1.92 billion.
Ghana’s economic recovery is underway, supported by the IMF’s financial assistance and policy guidance. The country’s commitment to economic reforms and debt restructuring is expected to yield positive results in the long term.
Key sectors, such as infrastructure development, healthcare, education, and energy, will benefit from the IMF’s financial support. These investments will contribute to Ghana’s sustainable growth and development.
Ghana’s staff-level agreement with the IMF marks a significant milestone in its economic recovery journey. With continued commitment to debt restructuring and economic reforms, Ghana is poised for sustainable growth and development, improving the lives of its citizens.
