The International Monetary Fund’s (IMF) Executive Board has authorized a $360 million payment to Ghana as a component of its $3 billion Extended Credit Facility (ECF) program.
The permission comes after Ghana’s performance under the program was successfully reviewed for the third time, which was announced on Monday, December 2, 2024.
With this most recent payment, Ghana has now received $1.92 billion from the ECF overall. The money is anticipated to be paid to the Bank of Ghana by the end of the week.
Ghana’s performance during the program was commended by the IMF, which also noted notable advancements in reforms and economic recovery.
“Ghana’s performance under the programme has been generally satisfactory, and reform efforts are paying off.” “Growth is recovering rapidly, inflation has declined, although at a slower pace, and the fiscal and external positions have continued to improve,” the IMF said in a statement.
Ghana’s progress in restructuring its public debt was emphasized by the IMF.
Domestic Debt: Last year, the government effectively reorganized its domestic debt. Official Creditors Agreement: In June 2024, Ghana and its Official Creditors Committee signed a Memorandum of Understanding within the G20 Common Framework. Eurobond Exchange: In accordance with program guidelines, the government has finished exchanging Eurobonds. External Commercial Creditors: In order to make sure that restructuring complies with program requirements and treatment comparability, discussions are still being held with external commercial creditors. Increasing Financial and Monetary Stability
In spite of increased risks, the Bank of Ghana (BoG) has continued to implement a cautious monetary policy to aid in the lowering of inflation and the restoration of international reserves.
Furthermore, steps to stabilize the financial system have been reinforced, such as:
encouraging prompt bank recapitalization. utilizing the resources at hand to recapitalize state-owned banks. utilizing regulatory measures to guarantee the sustainability of financial organizations.
The IMF’s support demonstrates Ghana’s dedication to debt management, economic reforms, and fiscal restraint.
As the nation strives for sustainable growth, the ECF’s finances are anticipated to help ongoing economic recovery and boost investor confidence.
Source: newsthemegh.com