IMF Completes Extended Credit Facility for Ghana

The IMF board has concluded the final review on the Extended Credit Facility Programme for Ghana.

This was contained in a statement issued by the outfit after a staff, concluded the 7th and 8th review earlier this year.

The meeting which was held in Washington DC, USA raised concerns including rising debts, fast-tracking work on the treasury single account, fiscal discipline ahead of 2020 election, balancing revenue and expenditure so as to not damage the economy.

Per the review, Ghana would no longer be restricted or be given conditionalities. However, this does not mean Ghana can or is going to exit the IMF.

Sources close to the government said they are optimistic of passing the last IMF board review meeting.

The IMF has proposed April 3 as the official date that Ghana can exit the IMF programme after almost four years of implementing several reforms.

The Executive Board of the International Monetary Fund (IMF) on April 3, 2015, approved a three-year arrangement under the Extended Credit Facility (ECF) for Ghana in an amount equivalent to SDR 664.20 million (180 percent of quota or about $918 million) in support of the authority’s medium-term economic reform program.

The programme was aimed at restoring debt sustainability and macroeconomic stability to foster a return to high growth and job creation while protecting social spending.

The Executive Board’s decision will enable an immediate disbursement of SDR 83.025 million (about US$114.8 million).

The new ECF-supported program, anchored on Ghana’s Shared Growth and Development Agenda, aimed at strengthening reforms to restore macroeconomic stability and sustain higher growth.

The main objectives of the program are to achieve a sizeable and frontloaded fiscal adjustment while protecting priority spending, strengthen monetary policy by eliminating fiscal dominance, rebuild external buffers, and safeguard financial sector stability.

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