Friday, February 23

IMF Urges Ghana to Stay Committed to Economic Reform Program

The International Monetary Fund (IMF) is urging Ghana to remain steadfast in its economic reform program to fully benefit from the ongoing bailout package. The IMF emphasizes the importance of effective implementation of structural reforms, particularly following the disbursement of the $600 million second tranche. This call comes at a time when the government is contemplating engagements with the IMF regarding an anticipated revenue shortfall due to the planned suspension of the Value-Added Tax (VAT) on electricity.

Abebe Selassie, Director of the African Department at the IMF, underscores the significance of Ghana adhering to the agreed-upon austerity measures to navigate its way out of the economic crisis. He stresses the importance of staying on course with the program, which is designed to be implemented over three to four years.

Selassie acknowledges Ghana’s progress under the program, noting that reforms are yielding positive results and signs of economic stabilization are emerging. He mentions that Ghana’s program is being implemented effectively, with the recent board review reflecting the government’s policies to address previous imbalances. Additionally, Selassie mentions that official creditors are signaling their support for debt relief consistent with Ghana’s needs.

The Bank of Ghana confirmed the receipt of the $600 million second tranche for budget support and currency stabilization, bringing the total disbursement to $1.2 billion out of the approved $3 billion under the three-year extended credit facility.

Ghana’s next IMF program review is scheduled for June 2024, where the country expects the release of the third tranche worth approximately $360 million. The IMF remains committed to supporting Ghana in line with the implementation of the reform program.