IMF approves $360million loan disbursal for Ghana

The International Monetary Fund (IMF) Executive Board has approved the third review of Ghana's 36-month Extended Credit Facility (ECF), paving the way for an immediate disbursement of approximately $360 million.

In a statement released on December 2, the IMF lauded Ghana's "generally satisfactory" performance under the programme, noting that the government’s reform efforts are yielding positive results.  

"The authorities’ economic strategy is delivering on its objectives, with the economy showing clear signs of stabilization," said IMF Deputy Managing Director Bo Li.  

According to the report, Ghana has made significant strides in stabilising its economy after acute financial pressures in 2022. Growth is rebounding, inflation is declining—albeit at a slower pace—and fiscal and external positions are improving.  

The IMF highlighted the country’s progress in debt restructuring as a crucial achievement. "After successfully restructuring domestic debt last year and reaching agreement on a Memorandum of Understanding with Ghana’s Official Creditors Committee under the G20 Common Framework in June 2024, the government has completed the exchange of its Eurobonds at conditions consistent with programme parameters," the report noted.  

The medium-term outlook remains favourable but faces risks, including those associated with elections and challenges in the energy sector. To mitigate these, the government is pursuing fiscal consolidation aimed at achieving a primary surplus of 1.5% of GDP in 2025.  

"Staying the course of fiscal policy adjustment—including before and after the upcoming elections—and creating room to enhance social programmes is paramount," Bo Li stated.  

Efforts to boost domestic revenue mobilisation and rationalise non-priority expenditure are expected to support these fiscal goals. Additionally, the IMF urged timely reforms in tax administration, public financial management, and state-owned enterprise oversight to sustain progress.  

The Bank of Ghana (BoG) was commended for its "prudent monetary policy stance" and efforts to rebuild international reserves. The BoG’s measures to stabilise the financial sector and its plans for recapitalising state-owned banks were also acknowledged.  

"Looking ahead, maintaining an appropriately tight monetary stance, given the upside risks to inflation, and enhancing exchange rate flexibility are of the essence," the report added.  

The IMF underscored the importance of structural reforms, stating that these are essential to creating an environment conducive to private sector investment and sustainable job creation.  

Bo Li concluded: "Steadfast programme implementation remains essential to fully and durably restore macroeconomic stability and debt sustainability, while addressing longstanding structural vulnerabilities."  

With this latest disbursement, Ghana has now received approximately $1.9 billion under the ECF programme, which is designed to help the country navigate economic challenges and foster inclusive growth.