Ghana has achieved a significant milestone with the successful completion of the first review of its $3 billion, 36-month Extended Credit Facility (ECF) Arrangement with the International Monetary Fund (IMF).
This accomplishment, alongside the 2023 Article IV Consultation, marks a positive step forward for the nation's economic recovery post-COVID-19.
The completion of the first ECF review has triggered an immediate disbursement of approximately US$600 million, bringing the total disbursements under the arrangement to about US$1.2 billion.
This financial injection is crucial as Ghana emerges from economic challenges exacerbated by external shocks and pre-existing fiscal vulnerabilities.
Finance Minister Ken Ofori-Atta expressed satisfaction with the IMF's endorsement, stating: “This affirmation reflects the government's steadfast reform trajectory, unlocking a US$600 million disbursement from the IMF, with an additional US$300 million anticipated.”
The successful debt restructuring deal with official creditors played a pivotal role in securing the IMF's approval.
The agreement grants a moratorium on debt payments until May 2026 and sets the stage for a potential Eurobond revamp by March 2024.
Minister Ofori-Atta acknowledged the role of the debt restructuring agreement in offering significant cash flow relief and expressed gratitude to France and China for their leadership in the negotiations.
Looking ahead, the finance minister announced that the next review is scheduled for the second quarter of this year, with an anticipated disbursement of around US$360 million.
He emphasized the ongoing economic reforms in tax policy, public financial management, energy, and the cocoa sector.
IMF Mission Chief for Ghana, Stéphane Roudet, outlined that the second review is tentatively set for April this year.
He expressed optimism about the review based on provisional figures, stating, “Logically, it should occur in early April to present to the board in May or early June.”
In a statement, Mr. Bo Li, IMF's Deputy Managing Director and Acting Chair, praised Ghana's efforts in implementing reforms and achieving positive results.
He stressed the importance of continued policy and reform implementation for fully restoring macroeconomic stability and debt sustainability.
The successful first review and debt restructuring agreement provide a foundation for Ghana's continued journey to economic resilience, emphasizing the importance of ongoing reforms and policy implementation for sustained stability and growth.
Additionally, pivotal meetings related to external debt restructuring are set to unfold this week, further contributing to Ghana's economic recovery.
