The Ghanaian government’s request to the International Monetary Fund (IMF) for $600 million has been approved.
This is because the IMF has revealed plans to disburse the $600 million loan to Ghana.
In fact, the International Monetary Fund (IMF) has completed the first review of Ghana’s 36-month extended credit facility arrangement.
The completed review encourages the IMF to disburse SDR 451.4 million or $600 million to the Ghanaian government.
IMF noted that Ghana’s performance under the 2023 Article IV Consultation programme had been strong.
Furthermore, it noted that all quantitative performance criteria for the first review, all indicative targets, and structural benchmarks were met by Ghana.
Ghana Set To Secure $600m From IMF
This is the first review of the $3 billion ECF Arrangement, which was approved by the IMF board on May 17, 2023.
The additional disbursement of $600 million brought Ghana’s total disbursements under the arrangement to about $1.2 billion.
According to the IMF, Ghana is committed to lowering the fiscal primary deficit by about four percentage points of GDP in 2023.
The IMF had these to say about Ghana’s commitment.
“Spending has remained within programme limits.
“To help mitigate the impact of the crisis on the most vulnerable population, the authorities have significantly expanded social protection programmes.
Ghana’s Commitment Is Extra-ordinary
“On the revenue side, Ghana has met its non-oil revenue mobilisation target.
“The Ghanaian authorities are also making good progress on their debt restructuring strategy.”
Their domestic debt restructuring was completed over the summer.
In January 2024, an agreement was reached with the Official Creditor Committee (OCC) under the G20’s Common Framework on a debt plan in line with Fund programme parameters.
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This agreement provided the financing assurances necessary for the Executive Board review to be completed.
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