IMF Approves Further $360 Million Loan Disbursement For Ghana: "Generally Satisfactory"

• The IMF has approved the third review of Ghana's Extended Credit Facility, allowing for the disbursement of $360 million.
• The IMF described Ghana's performance as generally satisfactory in a recent statement
• Ghana secured a bailout from the fund in May 2023 after defaulting on most of its $30 billion external debt in 2022

The IMF has approved the third review of Ghana's Extended Credit Facility, paving the way for an approximated $360 million disbursement.

The IMF has also lauded Ghana's performance under the programme, calling it generally satisfactory.

Further, the Bretton Woods institution also noted that the government’s reform efforts were yielding positive results.

According to the report, Ghana has made significant strides in stabilising its economy after acute financial pressures in 2022.

The Bank of Ghana was also commended for its "prudent monetary policy stance" and efforts to rebuild international reserves.

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The approval by the IMF’s Executive Board on Monday brings the total amount the West African nation has received since agreeing to a $3 billion programme in May last year to $1.92 billion.

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. Before the latest approval, Ghana had already received $1.56 billion.

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

Despite some delays, it said good progress has also been made on the critical 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.

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.

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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.

Proofread by Samuel Gitonga, Copy Editor at YEN.com.gh

Source: YEN.com.gh