Ghana Anticipates Signing MoU with External Creditors in November, Boosting Economic Confidence

Ghana’s Finance Minister, Mr. Ken Ofori-Atta, has expressed optimism about the government’s ability to secure a Memorandum of Understanding (MoU) with its external creditors by November. This development is expected to boost stakeholder and investor confidence in the Ghanaian economy and contribute to efforts aimed at achieving macroeconomic stability, debt sustainability, and inclusive growth.

The MoU will outline specific debt treatment arrangements that external creditors will agree upon with Ghana as part of the ongoing implementation of the government’s 17th International Monetary Fund (IMF) loan-support program. This program is designed to ensure Ghana’s macroeconomic stability, debt sustainability, and a pathway for inclusive growth, while also protecting vulnerable segments of the population.

This positive outlook comes as Ghana recently reached a Staff-Level Agreement with the IMF for the first review of its $3 billion Extended Credit Facility (ECF). The agreement paves the way for the disbursement of a second tranche of $600 million, pending Executive Board approval.

Speaking at a press conference in Accra following the conclusion of the IMF Staff Mission, Mr. Ofori-Atta mentioned that the government would utilize the IMF/World Bank Group (WBG) Annual Meetings in Marrakech to solidify agreements. He expressed optimism that bilateral creditors would deliver the MoU by November for review by the Board.

Mr. Ofori-Atta also noted the progress made in engaging with Eurobond holders and official lenders, with plans to further pursue these discussions during the upcoming IMF/WBG annual meetings in Marrakech, Morocco.

The Finance Minister highlighted the positive impact of the IMF-supported Post-COVID-19 Programme of Economic Growth (PC-PEG) on Ghana’s economy. Key indicators such as GDP growth, inflation, and currency stability have shown signs of improvement, demonstrating the effectiveness of the program.

Mr. Stephane Roudet, IMF Mission Chief for Ghana, commended the authorities’ commitment to policy and reform under the loan support program. He noted that economic stabilization was becoming evident, with better-than-expected growth, declining inflation, improved fiscal external positions, and a stabilized exchange rate.

Roudet emphasized the importance of Ghana securing an agreement with official creditors on debt treatment terms consistent with the parameters and targets set by the IMF Executive Board approval program. This agreement will be a crucial step in Ghana’s efforts to achieve economic stability and growth.

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