IMF Deal: Ghana Secures Staff-Level Agreement For $360 Million Fourth Tranche

• The IMF and Ghana have reached a staff-level agreement on the third review of Ghana’s US$ 3 billion extended credit facility
• The IMF described Ghana's performance as generally satisfactory after progress on debt restructuring
• Ghana secured a bailout from the fund in May 2023 after defaulting on most of its $30 billion external debt in 2022

The IMF and Ghana have reached a staff-level agreement on the third review of Ghana’s US$ 3 billion extended credit facility.

The release is subject to the approval of the IMF Board. It will bring Ghana’s total disbursements to US$1.92 billion.

The agreement follows a two-week assessment of the country’s fiscal data by some IMF staff.

At a press conference on October 4, the IMF described Ghana's performance as generally satisfactory after progress on debt restructuring.

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“All end-June 2024 quantitative targets were met, and progress on key structural reforms has continued, notwithstanding delays in a few areas. The authorities’ policy and reform efforts under the program have continued to deliver encouraging results”, Stéphane Roudet, IMF mission staff to Ghana, told the media.

Ghana's journey with the IMF

Ghana secured a $3 billion bailout from the fund in May 2023 after defaulting on most of its $30 billion external debt in 2022.

Ghana has already received $1.56 billion, with another $360 million due by December.

In an earlier report, the IMF said Ghana's economic reform program is delivering on its objectives.

Despite some delays, it said good progress has also been made on the key structural reform milestones.

The IMF said that a greater focus on reforms aimed at private sector development is needed to foster inclusive growth and poverty reduction.

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Mahama promises to renegotiate IMF deal

YEN.com.gh reported that the National Democratic Congress flagbearer, John Mahama, plans to renegotiate Ghana’s International Monetary Fund bailout.

Mahama claimed that the IMF would not be against a renegotiation based on his experience under a previous programme.

He also said he would seek additional IMF funds to help Ghana resume the debt repayments.

Several polls favour Mahama's victory in the 2024 elections. He will face New Patriotic Party flagbearer and Vice-President Mahamudu Bawumia.

Source: YEN.com.gh