Ghana expects to receive a US$360 million third tranche from the International Monetary Fund (IMF) on Monday, July 1, 2024, Dr Mohammed Amin Adam, Finance Minister, has said.
This comes following the completion and approval of the country’s second review under the Extended Credit Facility (ECF) programme on Friday, June 28.
In an address, Dr Amin Adam said: “This is yet an important development in our journey towards macroeconomic stability and we expect to receive of US$360m by Monday, July 1, 2024.”
The US$360m would bring the total disbursements for the three-year IMF financing support under the country’s Post COVID-19 Programme for Economic Growth (PC-PEG) to US$1.6 billion.
“I am very confident that we can travel this journey together and bring back an economy that’s strong enough to deliver the benefits to you all over the country,” Dr Amin Adam said.
The Fund said Ghana reaching a debt agreement with the Official Creditor Committee (OCC), consistent with the programme’s parameters, provided the financing assurances necessary for the second review to be completed.
It noted that all quantitative performance criteria for the second review, and almost all indicative targets were met, with good progress made on the key structural reform milestones, despite some delays.
It was observed that Ghana’s primary balance improved by over four per cent of Gross Domestic Product (GDP) last year, while the Bank of Ghana (BoG) maintained a prudent monetary policy stance to sustain a rapid reduction in inflation.
However, the Fund said structural reforms to help create an environment more conducive to private sector investment and enhance governance and transparency, would be key to boosting the economy’s potential and creating sustainable jobs.
“Looking ahead, sustaining macroeconomic policy adjustment and reforms is essential to fully and durable macroeconomic stability and debt sustainability – especially during the upcoming electoral period,” the Fund said.
Summarising the views of the Executive Directors, Kenji Okamura, Deputy Managing Director, IMF, said, the country’s performance under the ECF programme had been “generally strong.”
He noted that the authorities’ strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities was paying off, and commended the county’s progress made in adjusting its fiscal position.
However, he said: “Resolve in keeping the domestic revenue mobilisation agenda on track and tightening expenditure commitment controls is critical to avoid policy slippages ahead of the December 2024 general election.”
“Greater focus on reforms aimed at private sector development is needed to foster inclusive growth and poverty reduction,” the IMF Deputy Managing Director, said.
GNA
