IMF And Ghana Reach Staff-Level Agreement For New Three-Year $3 Billion Extended Credit Facility

• Ghana and the IMF have reached a staff-level agreement on the upcoming $3 billion Extended credit facility
• The staff-level agreement is subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances by Ghana’s partners and creditors
• Ghana applied for a $3 billion ECF from the Bretton Woods institution to correct balance of payment anomalies and unsustainable debt situations

The International Monetary Fund (IMF) staff and Ghana, led by finance minster Ken Ofori-Atta, have reached staff-level agreement on economic policies and reforms to be supported by the $3 billion Extended Credit Facility (ECF).

A statement authored by IMF Press Officer, Nico Mombrial, said the reforms presented by Ofori-Atta and his team aims to restore macroeconomic stability and debt sustainability while protecting the vulnerable.

The statement further stated that the strong reforms will also preserve financial stability and lay the foundation for strong and inclusive recovery.

Read also

Togbe Afede says government’s promise of ‘no haircut’ in proposed Domestic Debt exchange is a mockery

"To support the objective of restoring public debt sustainability, the authorities have launched a comprehensive debt operation," the statement said.

It added that apart from fiscal consolidation and measures to reduce inflation and rebuild external buffers, the reform programmes agreed to will address structural weaknesses and enhance resilience to shocks.

The IMF team was led by Stéphane Roudet who is quoted in the statement as follows:

"The staff-level agreement is subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances by Ghana’s partners and creditors. The Ghanaian authorities have committed to a wide-ranging economic reform programme, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackles the deep challenges facing the country."

Read also

IMF Bailout: US to support Ghana’s request for economic aid at Board level

Before reaching the staff-level agreement, the IMF team held meetings with vice president Mahamudu Bawumia, finance minister Ken Ofori-Atta, and Bank of Ghana Governor Ernest Addison, and their teams, as well as representatives from various government agencies.

There have been some speculations that the finance minister would organise a "Kenkey party" -- a party where Kenkey, a local food, is the main dish -- to celebrate the milestone.

The finance minister organised a Kenkey party celebrate Ghana's successful completion of a previous IMF programme in 2019.

Finance Ministry ‘Celebrates’ Local Currency’s Recent Gains Against US Dollar

Meanwhile, YEN.com.gh has reported in a separate story that the ministry of finance said the cedi is on course to make a robust recovery against the US dollar.

The ministry on its Twitter handle noted the recent gains and tagged the cedi as a strong currency.

Read also

Health administrators lament “serious liquidity challenges” due to rising inflation

This follows a Bloomberg report which indicated that the cedi had moved from the worst to the best performer against the US dollar.

Source: YEN.com.gh