Accra: The Executive Board of the International Monetary Fund (IMF) has approved Ghana’s third review programme, resulting in an immediate disbursement of US$360 million to the country. This approval brings the total disbursements under the ongoing three-year US$3 billion Extended Credit Facility (ECF) arrangement to approximately US$1.9 billion since May 2023.

According to Ghana News Agency, the IMF in a statement noted that despite some delays, Ghana has made considerable progress on key structural reforms. The statement mentioned that “Ghana’s performance under the IMF-supported programme has been generally satisfactory,” with all quantitative performance criteria and indicative targets for the third review being met. The Fund encouraged the government to persist with its policy and reform agenda implementation before and after the upcoming general elections, emphasizing the necessity of these actions for restoring macroeconomic stability and debt sustainability.

Commenting on the Board’s approval, Bo Li
, a Deputy Managing Director at IMF, stated that the economic strategy is meeting its objectives, with the economy showing signs of stabilization. He highlighted that continued programme implementation is essential to fully restore macroeconomic stability and debt sustainability, while addressing structural vulnerabilities. Bo Li stressed the importance of adhering to fiscal policy adjustments, enhancing social programmes, and reducing financing needs before and after the elections.

Bo Li urged the government to improve domestic revenue mobilisation and streamline primary expenditure through better tax administration, expenditure control, and arrears management. He also called for an enhanced fiscal responsibility framework and improved management of State-owned Enterprises (SOEs). Addressing recent energy sector challenges was also deemed critical to contain fiscal risks.

Furthermore, Bo Li suggested that Ghana should finalize its comprehensive debt restructuring promptly following the successful Eurobond
exchange. The Bank of Ghana was advised to maintain a tight monetary stance to address inflation risks, enhance exchange rate flexibility, and resolve legacy issues effectively. Lastly, actions taken by authorities to recapitalize state-owned banks were acknowledged, with a recommendation to implement robust supervisory strategies to strengthen credit and operational risk management.