The International Monetary Fund (IMF) staff, led by Mr. Stéphane Roudet, Mission Chief for Ghana, has successfully reached a staff-level agreement with Ghanaian authorities.
This is a step towards concluding the first review of Ghana’s 36-month Extended Credit Facility (ECF)-supported program. The performance in meeting the program’s targets and reform objectives, according to IMF staff, has been commendable.
Once approved by IMF Management and ratified by the IMF Executive Board, this agreement will grant Ghana access to another tranch of approximately US$600 million in financing. To expedite the review’s completion, Ghana requires official creditors to swiftly reach an accord on debt treatment in accordance with the financing assurances provided in May 2023.
Under this program, the Ghanaian authorities’ unwavering commitment to policy and reform has begun to yield positive results. Economic stabilization is becoming evident, with 2023 experiencing more resilient growth than initially projected, a decline in inflation, improved fiscal and external positions, and a stabilized exchange rate.
Mr. Roudet and his IMF staff team conducted discussions in Accra from September 25 to October 6, 2023, focusing on progress in implementing reforms and the government’s policy priorities in the context of the first review of Ghana’s ECF program, which received approval from the IMF Executive Board for a total amount of SDR 2.242 billion (US$3 billion) on May 17, 2023. During their visit, they also conducted the 2023 Article IV consultation.
At the conclusion of the mission, Mr. Roudet issued the following statement: “I’m very pleased to announce that the IMF staff and Ghanaian authorities have reached a staff-level agreement on the first review of Ghana’s economic program under the Extended Credit Facility arrangement. This staff-level agreement is subject to IMF Management approval and Executive Board consideration once the necessary financing assurances have been received. An agreement with official creditors on a debt treatment in line with program parameters would provide the needed financing assurances. Upon completion of the Executive Board review, Ghana would have access to SDR 451.4 million (about US$ 600 million), bringing the total IMF financial support disbursed under the arrangement, since May 2023, to SDR 902.8 million (about US$1,200 million).”
He also commended Ghana’s proactive response to an acute economic and financial crisis, highlighting the successful restructuring of domestic debt, extensive reforms, and their immediate positive impact. The nation’s fiscal performance has been robust, tracking a reduction in the fiscal primary deficit by around 4 percentage points of GDP in 2023. Social protection programs have expanded to aid vulnerable populations, while non-oil revenue mobilization targets have been met. Ambitious structural fiscal reforms are further enhancing revenue mobilization, spending efficiency, public financial management, and debt transparency.
The IMF staff underscored the urgency for official creditors to align with an appropriate debt treatment that complies with IMF Executive Board-approved program parameters and debt targets. Their call is rooted in Ghana’s impressive performance under the Fund-supported program.
During their visit, IMF staff held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, Bank of Ghana Governor Addison, and their respective teams, along with representatives from various government agencies. Engagements with other stakeholders also took place. The IMF staff expressed gratitude to the Ghanaian authorities and all counterparts for their collaborative and constructive efforts.