Ghana has reached a Staff-Level Agreement with the International Monetary Fund (IMF) for the second review of the Extended Credit Facility.

This will result in the release of $360 million by the Fund subject to passing the IMF Board Approval.

An International Monetary Fund (IMF) staff team, led by Stéphane Roudet, Mission Chief for Ghana, held meetings in Accra from April 2-12.

This was to discuss progress on reforms and the authorities’ policy priorities in the context of the second review of Ghana’s three-year program under the Extended Credit Facility.

The arrangement was approved by the IMF Executive Board for a total amount of $3 billion on May 17, 2023.  

At the end of the mission, Mr. Roudet who made the announcement said, "This staff-level agreement is subject to IMF Management approval and Executive Board consideration once the necessary financing assurances have been received.

"An agreement between the Ghanaian authorities and their official creditors on an MoU for a debt treatment in line with program parameters would provide the needed financing assurances.

"Upon completion of the Executive Board review, Ghana would have access to about $360 million, bringing the total IMF financial support disbursed under the arrangement since May 2023 to about $1,560 million."

The Mission Chief for Ghana added “Performance under the IMF-supported program has been generally strong, with most quantitative targets met. Good progress has also been made on the key structural reform milestones.

"The authorities’ policies and reforms to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth are already generating positive results."

According to Mr Roudet, “Economic activity in 2023 was more robust than initially envisaged, and growth projections for 2024 will be revised upward. Monetary policy has remained appropriately tight, allowing for inflation to decline rapidly."

On the fiscal front, he said, "Consistent with the authorities’ commitments under the IMF-supported program, the fiscal primary balance on a commitment basis improved by over 4 percentage points of GDP in 2023 and is on track to achieve a fiscal primary surplus of ½ per cent of GDP in 2024.

"Spending has remained within budget limits, while the authorities have significantly expanded social protection programs to help mitigate the impact of the crisis on the most vulnerable.

"Ghana has met its non-oil revenue mobilisation target while making progress in implementing ambitious structural fiscal reforms to bolster domestic revenues, strengthen public financial and debt management, and enhance transparency.

“The external sector has improved significantly, with international reserve accumulation ahead of program objectives. Financial stability has been preserved, with banks posting solid profits in 2023.

The Mission Chief for Ghana stated that, "Given Ghana's strong progress under the IMF-supported program, the next key step for the country is to reach an agreement with its official bilateral creditors on an MoU consistent with the terms agreed in January 2024.

"We look forward to the authorities’ continued efforts to reach an agreement with all creditors in line with program parameters.”

IMF staff held meetings with Finance Minister Dr Amin Adam; Bank of Ghana Governor Dr Ernest Addison, and their teams, as well as representatives from various government agencies.

The IMF team also engaged with other stakeholders.

The IMF staff team would like to express their gratitude to the Ghanaian authorities and other counterparts for their continued open and constructive engagement.