The International Monetary Fund (IMF) has concluded its first assessment of Ghana’s economic program under the Extended Credit Facility (ECF) arrangement, reaching a staff-level agreement.
The IMF staff team led by Stéphane Roudet, the Mission Chief for Ghana, conducted meetings in Accra from September 25 to October 6, 2023, to evaluate the progress of reforms and the government’s policy priorities within the framework of Ghana’s three-year program.
In a press statement, Mr. Roudet expressed his satisfaction, stating, “I’m very pleased to announce that the IMF staff and Ghanaian authorities have reached a staff-level agreement on the first review of Ghana’s economic program under the Extended Credit Facility arrangement.”
However, he emphasized that this agreement is subject to approval by IMF management and consideration by the Executive Board, contingent upon receiving necessary financing assurances.
Mr. Roudet outlined that securing an agreement with official creditors on debt treatment in line with program parameters is crucial to providing the required financing assurances. He indicated that once the Executive Board review is completed, Ghana will gain access to SDR 451.4 million (approximately $600 million), bringing the total IMF financial support disbursed under the arrangement since May 2023 to SDR 902.8 million (about $1.2 billion).
Despite facing acute economic and financial challenges, Ghana’s government has adjusted macroeconomic policies, completed domestic debt restructuring, and initiated comprehensive reforms. These actions have yielded positive results, with 2023 showing more resilient economic growth, declining inflation, improved fiscal and external positions, and stabilized exchange rates.
Mr. Roudet commended Ghana’s fiscal performance, emphasizing that the country is on track to reduce the fiscal primary deficit by approximately 4.0 percentage points of GDP in 2023 while staying within program limits. Additionally, he highlighted the government’s commitment to expanding social protection programs and successful non-oil revenue mobilization.
Mr. Roudet further urged official creditors to collaborate with Ghana to agree on a debt treatment consistent with the IMF Executive Board-approved program parameters and debt targets, emphasizing the importance of fulfilling the financing assurances provided in May 2023.
