IMF Approves $360 Million For Ghana After Second Review

On Friday, the International Monetary Fund (IMF) approved the second review of Ghana’s $3 billion loan program, allowing an immediate release of approximately $360 million.

This approval follows Ghana’s agreement with its official creditor committee, which was a necessary step to release this portion of the fund.

The new disbursement brings the total IMF aid under the three-year program to $1.56 billion, which is aimed at helping Ghana recover from its severe economic crisis.

IMF said that Ghana’s performance under the program has been generally strong.

The authorities’ strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is paying off, with clear signs of stabilisation emerging, said the IMF Deputy Managing Director, Kenji Okamu.

Ghana’s central bank expects to receive the funds within two days, a source in Ghana’s bank told Reuters.

In 2022, Ghana sought IMF’s support due to the country’s economic challenges, which included a weakening cedi currency, high inflation, and rising debt cost.

However, the economy has stabilised since then, with 2.9% growth last year and 4.7% growth in the first quarter of 2024. Inflation has decreased from over 54% in December 2022 to 23.1% last month, though the cedi continues to depreciate.

Nevertheless, Okamu averred that “perseverance in macroeconomic policy adjustment and reforms is essential to restore macroeconomic stability and debt sustainability fully.”

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