The Executive Board of the International Monetary Fund (IMF) has approved Ghana’s $3 billion bailout request, aimed at reviving the country’s crippling economy.
The decision was made during the Executive Board’s meeting held on Wednesday, following Ghana’s receipt of financing assurances from the Paris Club.
A statement by the IMF indicated that the “Executive Board of the International Monetary Fund (IMF) approved a 36-month arrangement under the Extended Credit Facility (ECF) in an amount equivalent to SDR 2.242 billion (around US$3 billion, or 304 percent of quota).
“The program is based on the government’s Post COVID-19 Program for Economic Growth (PC-PEG), which aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth.”
According to the IMF’s Executive Board, the decision will enable an immediate disbursement to Ghana equivalent to SDR 451.4 million (about US$600 million).
“Large external shocks in recent years have exacerbated Ghana’s pre-existing fiscal and debt vulnerabilities, resulting in a loss of international market access, increasingly constrained domestic financing, and reliance on the monetary financing of the government. Decreasing international reserves, Cedi depreciation, rising inflation, and plummeting domestic investor confidence, eventually triggered an acute crisis.”
Read the full details of the IMF Executive Board Approval of the US$3 Billion Extended Credit Facility to Ghana.