According to Abebe Aemro Selassie, the Director of the African Department at the International Monetary Fund (IMF), Ghana has effectively taken the essential steps to obtain the crucial financing assurance from its foreign creditors.
Speaking during the release of Africa’s Regional Outlook Report at the Annual IMF/World Bank meetings in Marrakesh, Morocco, Mr. Selassie expressed optimism about Ghana’s readiness and emphasized that it was now in the hands of the external creditors to respond accordingly.
“We have to tell you that whereas it took something like nine months or more for Zambia to get the official creditor committee to be created, in Ghana’s case, it was fairly rapid,” Mr. Selassie stated. He further noted, “Ghana has done its fair share, and it’s for the creditors to take steps.”
The Director at the IMF’s African Department stressed that Ghana wouldn’t be asked to make further adjustments since creditors had not made such requests. “We will provide all the necessary information, so creditors can move, allowing us to go to the Board as soon as possible,” Mr. Selassie added.
He expressed hope that ongoing discussions among official creditors would expedite the conclusion of Ghana’s upcoming review. During these discussions, an agreement was reached between the IMF mission and the Ghanaian government on policies necessary to address the most recent issues.
Ghana’s First Programme Review and IMF Board Meeting
On October 6, 2023, the IMF announced that its staff had reached a staff-level agreement with Ghana on the first review of the Extended Credit Facility secured earlier in the year. The agreement followed discussions led by Mission Chief for Ghana, Stephane Roudet, focusing on reforms and policy priorities within the context of Ghana’s three-year program under the Extended Credit Facility.
Ghana is currently working to secure a Memorandum of Understanding from its Bilateral External Creditors, which will enable the IMF board to approve Ghana’s First Programme Review and disburse approximately $600 million in November 2023.
The IMF Mission Chief for Ghana confirmed the fund’s participation in creditor committee meetings, ensuring that the IMF board can swiftly approve the second tranche of $600 million once a deal is reached.
The IMF Board is expected to convene on Ghana’s program on November 22, 2023, as reported by sources with knowledge of the country’s program in Washington DC, USA.
Ghana’s Performance under the IMF Program
Mr. Abebe Aemro Selassie, the Director of the African Department at the IMF, has described Ghana’s performance under the IMF program as satisfactory.
He commended the progress made in implementing the program since its approval by the Board. Mr. Selassie highlighted that significant steps had been taken to address the macroeconomic imbalances that were the root causes of the recent crisis, and efforts are underway to correct them.
Supporting Ghana in the Fight Against Corruption
The Ghanaian government has requested the IMF’s support in implementing measures to combat corruption as part of its broader program.
When asked about this request, Mr. Selassie expressed willingness to provide a governance diagnostic report, stating, “I’m not sure of where we are in terms of being able to provide that TA, but as soon as we have the resources, we will do that. And it’s just a matter of time, I believe.”