Source: newsthemegh.com
A staff-level agreement on the second assessment of Ghana’s loan-support program has been reached by an International Monetary Fund (IMF) staff team, enabling the Executive Board to examine and approve approximately US$360 million for the nation.
This follows the conclusion of discussions over the nation’s Extended Credit Facility arrangement that took place in Accra between April 2, 2024, and April 12, 2024, between Ghanaian authorities and the IMF staff team.
“Upon completion of the Executive Board review, Ghana would have access to SDR 269.1 million (about US$ 360 million).” statment said.
“This staff-level agreement is subject to IMF Management approval and Executive Board consideration once the necessary financing assurances have been received,” Mr Roudet said in the statement.
“We look forward to the authorities’ continued efforts to reach an agreement with all creditors in line with programme parameters,” he said.
The announcement stated that this would raise the entire amount of IMF funding distributed under the ECF arrangement since May 2023 to SDR 1,171.9 million, or almost US$ 1,560 million.
The Mission Chief did point out that, in light of Ghana’s impressive advancements under the IMF-backed program, the nation must now finalize its arrangement with its formal bilateral creditors.
The mission chief gave an update on Ghana’s performance under the IMF-sponsored program, noting that substantial progress had been made on the major structural reform milestones and that the majority of quantitative targets had been reached.
He gave some numbers to support his claim that in 2023, there was an improvement in the fiscal primary balance of GDP of more than four percentage points on a commitment basis.
Additionally, Mr. Roudet stated that the nation was on course to reach a fiscal primary surplus of 0.5% of GDP by 2024.
“The authorities’ policies and reforms to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth are already generating positive results,” he stated.
“Spending has remained within budget limits, while the authorities have significantly expanded social protection programs to help mitigate the impact of the crisis on the most vulnerable,” he stated.
“Ghana has met its non-oil revenue mobilisation target, while making progress in implementing ambitious structural fiscal reforms to bolster domestic revenues, strengthen public financial and debt management, and enhance transparency,” he noted.
Additionally, according to Mr. Roudet, Ghana’s external sector has greatly improved, with banks reporting strong earnings in 2023 and international reserve building ahead of program targets. Financial stability has also been maintained.
Staff from the IMF met with the teams of the governor of the Bank of Ghana, Dr. Ernest Addison, and the finance minister, Dr. Mohammed Amin Adam, as well as officials from other government agencies and other interested parties.