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Ghana has secured USD 360 million from the International Monetary Fund (IMF) after the successful third review of the 36-month Extended Credit Facility Arrangement.
The approval by the IMF’s Executive Board brings total disbursements under the arrangement to about USD 1.9 billion since May 2023. The IMF noted progress under the facility, citing recovering economic growth, declining inflation – although at a slower pace and improvements in the fiscal and external positions.
Ghana faced a severe financial crisis in 2022, forcing the government to default on its external debt, negotiating a 3-year USD 3 billion relief package from the IMF.
The Bretton Woods institution said it expects Ghana’s GDP to grow by 4% this year and by 4.4% in 2025. Ghana had lost access to international markets post–COVID–19, following a drop in investor confidence fueled by elevated fiscal deficits and public debt levels coupled with the global monetary policy tightening.
The mounting pressures on domestic financing prompted the West African nation to turn to monetary financing by the central bank, which fed into declining foreign reserves, currency depreciation, and ballooning inflation.
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The disbursement comes as Ghana is headed for the polls on 7th December, to elect a new president to replace Nana Akufo-Addo. Vice President Mahamudu Bawumia, from Akufo-Addo’s ruling New Patriotic Party faces Former president John Dramani Mahama of the opposition National Democratic Congress party as the main challenger.
