The International Monetary Fund (IMF) has reiterated the critical importance of Ghana adhering diligently to its bailout program, emphasizing the need for effective implementation of structural reforms to fully realize its benefits. Abebe Aemro Selassie, the IMF’s Director of the African Department, underscored the necessity for Ghana to strictly follow the agreed-upon austerity measures during a webinar held on February 5 in Washington, DC. He emphasized that these measures are vital for Ghana’s economic prosperity and urged the country to stay committed to the program over the next three years.
“Going forward, it would be really important that Ghana continues to implement the program that they have developed as envisaged. That is really critical,” Selassie emphasized. While acknowledging Ghana’s positive performance within the program and the visible results of implemented reforms leading to economic stabilization, Selassie stressed the importance of consistency in program implementation. He highlighted Ghana’s effective execution of reforms, citing a recent board review that affirmed the government’s policies aimed at addressing significant imbalances faced by Ghana in the past year.
“Ghana’s program is being implemented effectively. We just went to the board recently with the first program review following, of course, the policies that the government has been putting in place to address the huge imbalances Ghana was facing last year,” Selassie stated.
He also mentioned that official creditors have signaled their commitment to providing debt relief in line with Ghana’s requirements. Selassie expressed the IMF’s continued support for Ghana, reaffirming their commitment to assisting the country in accordance with program implementation.
In late January, the Bank of Ghana confirmed the receipt of the second tranche totaling $600 million, intended for budget support and currency stabilization. This disbursement brought the total amount received to $1.2 billion out of the approved $3 billion under the three-year extended credit facility granted in May 2022. The upcoming review of Ghana’s IMF program is scheduled for June 2024, with the aim of securing the third tranche amounting to approximately $360 million. This review will play a crucial role in assessing Ghana’s progress and determining the continuation of financial support under the program.
