The Minister of Finance has expressed his appreciation to Ghanaians as the country moves into conditionalities to secure the results of the International Monetary Fund (IMF) assistance.
According to Dr. Mohammed Amin Adam, this process would not have been possible without the support of various stakeholders, including the general public.
“Let me also take this opportunity to thank the people of Ghana, for your patience and forbearance,” he said.
This comes after the IMF’s Executive Board completed their second review of Ghana’s $3 billion, 36-month Extended Credit Facility (ECF).
Approved in May 2023, this review was a critical checkpoint for the country.
Completion of this review meant an immediate disbursement of approximately $360 million, bringing Ghana’s total disbursements under the agreement to approximately $1.6 billion.
In a video, the minister thanked “His Excellency the President for his strong leadership and direction, which helped implement various policies and measures under the Foreign Programme. We would also like to congratulate the IMF, the World Bank and all other development partners for their support for Ghana.”
On the back of this new development, the minister was “very confident that we can travel this journey together and restore an economy strong enough to deliver the benefits and development across the country”.
At a meeting, Deputy Managing Director Kenji Okamura announced: “Ghana’s performance under its ECF-supported reform program has been generally strong.
The authorities’ strategy aimed at restoring macroeconomic stability and reducing debt vulnerabilities is paying off, with clear signs of stabilization emerging.”
Ghana’s economic reform program had indeed achieved its objectives. After facing severe economic and financial pressures in 2022, the IMF-backed program provided a reliable anchor for the government.
He helped adjust macroeconomic policies and implement reforms to restore macroeconomic stability and debt sustainability. The foundations were being laid for higher and more inclusive growth.
“These efforts are paying off,” Okamura noted. “Growth is proving to be more resilient than initially expected, inflation is falling at a faster rate and fiscal and external positions are improving.”
Despite some delays, Ghana has made significant progress on key stages of structural reform. The Ghanaian authorities were also moving forward with their comprehensive debt restructuring.
On 11 June 2024, they reached an agreement with Ghana’s Official Creditor Committee (OCC) under the G20 Common Framework on a Memorandum of Understanding (MoU), formalizing an agreement in principle to deal with the debt.
Kenji Okamura pointed out, “This debt treatment agreement, in accordance with the parameters of the program, provided the necessary financial assurances for the second revision under the ECF Agreement to be completed.”
Moreover, Ghana’s primary fiscal balance had improved by over 4 percent of GDP last year.
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