The Bank of Ghana has received $367 million from the International Monetary Fund (IMF) after successfully completing its fourth review under the Extended Credit Facility program.
On Wednesday, July 9, the money was received. It is the fifth installment of the $3 billion IMF program that was approved in 2023.
Additionally, this payment is anticipated to stabilize the cedi, bolster Ghana’s external buffers, and assist the government in meeting urgent balance-of-payment requirements.
As part of the $3 billion IMF program agreed to in 2023, it aims to speed up economic reforms and restore debt sustainability.
Initiated in May 2023, the program aimed to bring stability following a period of economic instability characterized by excessive inflation, depreciation of the cedi, and unmanageable debt levels.
Ghana is subject to recurring evaluations under the agreement to evaluate the status of its financial, structural, and fiscal reforms.
Ghana has so far surpassed expectations under the IMF program, according to Finance Minister Dr. Cassiel Ato Forson, which has contributed to reviving trust in the economy both domestically and internationally.
As the government steps up measures to restore macroeconomic resilience and spur growth, the most recent payout is anticipated to support budget operations, further stabilize the cedi, and assist the nation in meeting its foreign commitments.
The announcement coincides with Ghana’s ongoing debt restructuring talks under the G20 Common Framework with external creditors and holders of Eurobonds, which are essential to the IMF program’s successful completion.
To promote growth and guarantee long-term sustainability, some economists have emphasized the significance of allocating the funding to vital industries like agriculture.
“But I think if I were to suggest, I will say we should use it to support the agric sector in the meantime and perhaps some of the road projects that have stalled because the stalling of those road projects tends to increase the cost, and then we have seen that agriculture is mainly the fulcrum. It is a very important aspect. Now the government has launched the 24 hour economy. I think agriculture should be at the heart of it,” Professor Patrick Asuming stated.
Source: newsthemegh.com