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The International Monetary Fund’s (IMF) executive board on Friday (28 June) approved the second review of Ghana’s US$3 billion loan programme.

The latest approval allows for the immediate disbursement of US$360 million to the country to boost its economic recovery.

The decision comes after the country finalised a deal with its official creditor committee – a step that had been a pre-requisite to unlock the second tranche.

The new tranche will take total IMF disbursements under the three-year bailout programme designed to help Ghana out of its economic challenges to about US$1.6 billion.

In a statement on Friday (28 June), the IMF said, “Ghana’s economic reform programme is delivering on its objectives. Following acute economic and financial pressures in 2022, the Fund-supported program has provided a credible anchor for the government to adjust macroeconomic policies and implement reforms to restore macroeconomic stability and debt sustainability, while laying the foundations for higher and more inclusive growth.”

“These efforts are paying off, with growth proving more resilient than initially expected, inflation declining at a faster pace, and the fiscal and external positions improving. The medium-term outlook remains favorable but subject to downside risks—including those related to the upcoming general elections,” the statement added.
 
According to the Bretton Woods Institution the country’s performance under the programme has been generally strong.

“All quantitative performance criteria for the second review and almost all indicative targets were met. Good progress has also been made on the key structural reform milestones, despite some delays,” the statement added.
 
The IMF stated that “the Ghanaian authorities have also continued to make progress on their comprehensive debt restructuring.”

On June 11, 2024, Ghana reached agreement with its Official Creditor Committee (OCC) under the G20’s Common Framework on a Memorandum of Understanding (MoU) formalising the agreement in principle on a debt treatment, which was reached in January 2024.

This agreement on a debt treatment, consistent with programme parameters, provided the financing assurances necessary for the second review under the ECF Arrangement to be completed.

The country has also recently reached agreement in principle with representatives of Eurobond holders on a restructuring consistent with programme parameters, subject to confirmation on comparability of treatment by the OCC.