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The International Monetary Fund on Saturday validated a fresh tranche of aid of USD 360 million for Ghana as the country seeks to exit an economic crisis. The latest aid comes as part of a second review of the IMF’s USD 3 billion assistance package, which was approved last year.
The IMF’s decision came after Ghana clinched a deal with its official creditors a week earlier to restructure parts of its external debts, a critical requirement to unlock the second tranche of IMF funding.
The aid is meant to help Ghana shore up its public finances and better manage its heavy debt load. The latest package means total IMF financial support released under the agreement since May 2023 is worth about USD 1.5 billion, the IMF stated.
IMF staff and the Ghanaian authorities have reached a staff-level agreement on the second review of Ghana’s economic programme under the Extended Credit Facility, said IMF mission head for Ghana Stephane Roudet, referring to an aid programme for political services and economic reforms.
In 2022, Ghana endured its worst economic crisis in decades, with inflation racing past 50% which forced Ghana – a major gold, oil, and cocoa producer – to take out a loan and also restructure its debts. The country has, along with other African states, also been hard hit by the economic fallout from the coronavirus pandemic as well as the Russia-Ukraine war.
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According to the IMF, the aid provided to Ghana has already borne fruit in enabling Accra to set in train reforms aimed at restoring macroeconomic stability and debt sustainability while laying the groundwork for stronger and more inclusive growth. Last year Ghana successfully carried out a restructuring of its domestic debt.
