The International Monetary Fund (IMF) Board is meeting today to consider the approval of Ghana’s First Review under the External Credit Facility (ECF) Programme, which will unlock the second tranche of $600b.
This comes after Ghana met its First Review targets, resulting in the 6th October 2023 staff-level agreement (SLA).
Ghana’s Finance Ministry has accordingly appealed to all to “join in prayer for the Lord’s continued hand in the affairs of Ghana, and a successful IMF Board meeting today.”
Today’s IMF Board Meeting also follows the Official Creditors Committee (OCC) 12th January agreement in principle on Ghana’s bilateral debt treatment.
The Ministry said on its X platform that “We, the people of Ghana have done our part and as Proverbs 21:31 says ‘The horses are prepared for the day of battle, but #Victory belongs to the Lord,'”.
The Managing Director of the International Monetary Fund (IMF), Kristalina Georgieva, has stated that Ghana’s economic policies under its programme are beginning to yield the desired outcomes.
She emphasised that the policy and reform commitments outlined in Ghana’s deal with the Bretton Woods Institution are in the best interest of the Ghanaian people.
In a post on X (formerly Twitter) on Tuesday, January 16, she expressed the satisfaction of the IMF board with the assurances received from Ghana’s external creditors.
“Wonderful to see President Nana Addo Dankwa Akufo-Addo and Ghana’s Finance Minister, Ken Ofori-Atta at #WEF24. The policy and reform commitments under Ghana’s economic program are starting to bear fruit,” she posted.
Deputy Finance Minister Dr. John Kumah also asserts that Ghana‘s economy has successfully overcome recent challenges, positioning itself for sustainable growth to benefit Ghanaians.
In a Facebook post dated January 19, Dr. Kumah highlighted the unanimous approval of Ghana’s request for debt treatment under the G-20 Common Framework.
Successful IMF board meeting will lead to disbursement of second tranche to Ghana – John Kumah
This, he believes, forms the foundation for his positive outlook on the nation’s economic trajectory.
Expressing gratitude, Dr. Kumah commended the people of Ghana for their unwavering support of the government’s measures and policies.
He specifically acknowledged their role in mitigating the adverse impacts brought about by the COVID-19 outbreak and the Russia-Ukraine war.
With optimism, the Ejisu Member of Parliament anticipates a brighter future for the country.
He emphasised that the approved debt treatment sets the stage for sustained economic progress and ultimately benefits the citizens of Ghana.
“An essential prerequisite for the IMF Programme was a confirmation that Ghana’s public debt was on a sustainable trajectory.”
“Subsequently, Ghana embarked on the restructuring of both domestic and external debt. The Domestic Debt Exchange Programme (DDEP) launched on 5th December 2022 has successfully been completed with over 90 percent participation. The OCC’s approval of bilateral debt treatment is expected to provide the impetus for the ongoing commercial debt (Eurobonds) negotiations,” a portion of his Facebook post said.
Dr Kumah added that “the past week was marked by a significant development in the public debt trajectory following the unanimous approval of Ghana’s request for debt treatment under the G-20 Common Framework for Debt Treatment Beyond the Debt Service Suspension Initiative (CF-DSSI).”
“The government has been combining both fiscal prudence and debt restructuring measures to contain growth in public debt with the view of bringing the debt levels to moderate debt level from high risk of debt distress. The Official Creditor Committee (OCC) decision to support the grand efforts of government is commendable, refreshing and worth celebrating. We, however, do so with caution given that more work needs to be done going forward.”