IMF and Ghana Reach Staff-Level Agreement on Second Review

The International Monetary Fund (IMF) has announced that it has reached a staff-level agreement with Ghana to conclude the second review of the 36-month Extended Credit Facility (ECF)-supported program. This agreement sets the stage for the release of the third tranche of US$360 million, pending approval by the IMF’s Executive Board.

According to an IMF release, Ghana’s performance under the program has been largely positive, with most quantitative objectives achieved and key reforms implemented. The country’s strong policy efforts have led to better-than-expected economic growth, a continued decline in inflation, and significant improvements in both fiscal and external positions in 2023.

However, to ensure the timely completion of the review, Ghana and its official bilateral creditors must reach an agreement on a Memorandum of Understanding (MoU) for debt treatment. This MoU should be consistent with the agreement in principle reached in January 2024.

The agreement between the IMF and Ghana reflects the commitment of both parties to ensuring the country’s economic stability and growth. It also underscores the importance of continued cooperation and reforms to address Ghana’s fiscal and debt challenges.