Ghana Optimistic Ahead of IMF Board Review, Eyes $370 Million Disbursement to Boost Economy
The Ghanaian government is cautiously optimistic about passing the International Monetary Fund’s (IMF) upcoming Executive Board review of the country’s economic programme under the Extended Credit Facility (ECF), scheduled for early July. Approval of this review would unlock a disbursement of approximately $370 million, increasing total funds received under the programme to about $2.4 billion since May 2023. This funding is expected to support Ghana’s ongoing economic recovery efforts.
Seth Terkper, Presidential Advisor on the economy, emphasized the significance of the review during an interview on Channel One TV, noting that the government entered the process with experience and that key structural measures and benchmarks have been met. He expressed cautious optimism, citing positive feedback from IMF staff who recently conducted an assessment in Ghana. The successful completion of this review would inject much-needed funds into the economy.
This financial lifeline is aimed at strengthening Ghana’s debt sustainability and supporting fiscal reforms that have been ongoing. The IMF had earlier announced a staff-level agreement with Ghanaian authorities on April 15, which paved the way for the expected Executive Board approval. Once approved, the disbursement will mark a continued commitment by the IMF to Ghana’s economic programme.
Market analysts interpret the anticipated approval as a strong vote of confidence in Ghana’s fiscal discipline and structural adjustments, which include efforts to mobilize domestic revenue, rationalize government spending, and restructure debt. These measures are key to stabilizing the economy amid ongoing challenges.
Experts further note that a positive outcome from the review is likely to boost investor confidence, help stabilize the Ghanaian cedi, and contribute to easing inflationary pressures. The government’s hopeful outlook reflects the importance of the IMF programme in sustaining Ghana’s macroeconomic stability and growth trajectory.
Source: Citi newsroom