The International Monetary Fund (IMF) has reached a staff-level agreement with Ghanaian authorities after conducting comprehensive discussions in Accra from September 25 to October 6, 2023.
The discussions centered on assessing progress in implementing reforms and policy priorities as part of Ghana’s economic program under the Extended Credit Facility.
This agreement, which is subject to approval by IMF Management and consideration by the Executive Board following the receipt of necessary financing assurances, marks a significant milestone in Ghana’s efforts to stabilize its economy.
Following the Executive Board’s review, Ghana is poised to access approximately US$600 million, augmenting the total financial support provided by the IMF to around US$1.2 billion since May 2023.
In the face of a severe economic and financial crisis, Ghanaian authorities have undertaken critical macroeconomic adjustments, successfully concluded a domestic debt restructuring operation, and initiated extensive reforms. These efforts have yielded positive results, including stronger-than-expected economic growth, reduced inflation, improved fiscal and external positions, and stabilization of exchange rates in 2023.
In line with commitments under the Fund-supported program, Ghana has demonstrated robust fiscal performance, working towards a significant reduction in the fiscal primary deficit by approximately 4 percentage points of GDP in 2023. Fiscal spending has adhered to program limits, with a focus on expanding social protection programs to support the most vulnerable segments of the population. Ghana has also met its non-oil revenue mobilization target.
To sustain these achievements, the next critical step involves securing an agreement with official creditors on debt treatment terms consistent with the IMF Executive Board-approved program parameters and debt targets. The IMF calls on official creditors to expedite this process, aligning it with the financing assurances provided in May 2023.
Throughout the discussions, meetings were held with key figures, including Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, along with their respective teams. The IMF team also engaged with various government agencies and stakeholders, expressing gratitude for their cooperative and transparent collaboration.