The International Monetary Fund (IMF) has approved a $360 million disbursement to Ghana following a successful third review of its extended credit facility.
This brings the total funds received under the $3 billion program, agreed upon in May 2023, to $1.92 billion.
Why it matters
- The funds provide critical support as Ghana works to stabilize its economy following a debt crisis.
- The disbursement signals continued IMF confidence in Ghana’s reform efforts, which include significant debt restructuring and fiscal discipline.
Context
- Ghana sought IMF assistance after its public debt swelled to unsustainable levels, forcing the country to restructure nearly all of its 761 billion cedis ($50 billion) in debt.
- The reforms are part of IMF conditionalities aimed at restoring macroeconomic stability and ensuring long-term debt sustainability.
What they’re saying
- The IMF highlighted the importance of Ghana’s commitment to reforms, stating: “Steadfast implementation of the policy and reform agenda, including before and after the upcoming general elections, remains essential to fully restore macroeconomic stability and debt sustainability.”
The political backdrop
- Ghana heads to the polls on December 7 for presidential elections. Vice President Mahamudu Bawumia is set to face opposition leader and former president John Dramani Mahama.
- The political transition will be critical in maintaining reform momentum, as President Nana Akufo-Addo steps down after serving two terms.
What’s next
Ghana’s ability to sustain its reform agenda amid election pressures will be closely watched. The next IMF review will assess the country’s progress in maintaining fiscal discipline and advancing economic stability.
