IMF reaches staff level agreement with Ghana on 2nd review

The International Monetary Fund (IMF) and Ghana have reached a staff-level agreement to complete the second review of the 36-month Extended Credit Facility (ECF)-supported program. This agreement will enable the disbursement of a third tranche of US$360 million, pending approval by the IMF Executive Board.

In a statement, the IMF noted Ghana’s strong performance under the program, with most quantitative objectives met and key reforms implemented. The country has experienced higher-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 agreement should be consistent with the agreement in principle reached in January 2024.

The agreement highlights the positive outcomes of Ghana’s policy efforts and demonstrates the country’s commitment to economic reform and stability. It also underscores the importance of collaboration between Ghana and its international partners to address debt sustainability and promote economic development.