Ghana has successfully reached a Staff-Level Agreement with the International Monetary Fund (IMF) for the second review of the Extended Credit Facility.
However, the Executive Board of the IMF has emphasized that Ghana must first obtain the necessary financial assurances from external creditors before the planned $360 million can be disbursed.
A delegation from the IMF, led by Stéphane Roudet, the Mission Chief for Ghana, met in Accra from April 2-12, 2024, to assess the country’s reform progress and the government’s policy direction within the context of Ghana’s three-year programme under the Extended Credit Facility.
While the Staff-Level Agreement marks a significant step forward for Ghana, the nation still faces a major challenge in securing key financing assurances from its external bilateral creditors. The IMF has made it clear that the disbursement of the $360 million is contingent upon Ghana obtaining these financial assurances through a formal Memorandum of Understanding (MoU) with its official creditors.
The Ministry of Finance had previously indicated in January 2024 that a debt relief plan with official bilateral creditors was in the works, with the terms expected to be finalized in an MoU. The successful execution of this MoU would pave the way for bilateral agreements with each member of the Official Creditor Committee.
The delay in finalizing these agreements with creditors could potentially stall the IMF Executive Board’s approval of Ghana’s second review programme. However, Ghana remains optimistic that the necessary financial assurances will be secured through productive discussions on debt restructuring with external creditors, particularly in the bilateral sector.
Until the financing assurances are formalized in the MoU, the $360 million package will remain out of reach for the Bank of Ghana.
Nevertheless, the Ghanaian authorities are committed to working closely with official creditors to ensure the timely implementation of the agreed terms and ultimately unlock the much-needed financial support for the country’s economic recovery.
