Stephane Roudet, the International Monetary Fund (IMF) Mission Chief for Ghana, has assured creditors and investors worldwide that Ghana’s 17th loan-support programme with the Fund will position the country as a resilient economy. Roudet emphasized that the current programme, which received Board approval on Wednesday, encompasses a wide range of structural reforms across various sectors, aiming to enhance Ghana’s resilience and ability to withstand future shocks.
The initial tranche of $600 million out of the total $3 billion loan from the IMF, aimed at ensuring macroeconomic stability by reducing interest payments, debt, and budget deficits, will be deposited into Ghana’s account on Friday.
During a press briefing in Washington DC and online on Thursday, Mr. Roudet provided these reassurances after the IMF Board approved a $3 billion Extended Credit Facility (ECF) arrangement for Ghana. He expressed confidence that the successful implementation of the three-year ECF arrangement would pave the way for a promising future for Ghana.
Mr. Ken Ofori-Atta, Ghana’s Finance Minister, affirmed the government’s commitment to increase revenue and implement expenditure rationalization measures to generate additional funding resources under the programme. These efforts are aimed at making Ghana more attractive to foreign and private investors, fostering higher economic growth and job creation. The government is determined to meet all benchmarks for the successful execution of the programme.
Mr. Ofori-Atta drew inspiration from the momentum that led to the attainment of the Staff-Level Agreement, financial assurances from bilateral creditors, and approval within a relatively short period for the implementation of the 36-month programme. He expressed confidence in the collective effort of the Ghanaian people to overcome current challenges and emerge stronger than before.
The Finance Minister urged stakeholders to swiftly offer their support to give substance to the catalytic role of the IMF and conclude remaining negotiations on external debt restructuring. This is crucial to ensure that Ghana can fully reap the benefits of the loan-support programme.
Dr. Ernest Addison, Governor of the Bank of Ghana, emphasized that the approval of the $3 billion loan programme would enable Ghana to engage more effectively with other development partners, securing the necessary reforms for macroeconomic stability and sustainable growth.
The IMF loan facility with Ghana constitutes a three-year Post COVID-19 Programme for Economic Growth (PC-PEG). It aims to provide balance of payment funding as part of broader efforts to accelerate Ghana’s recovery from the economic crisis caused by the pandemic, the Russia-Ukraine war, and internal structural challenges. The programme also seeks to create conditions for inclusive and sustainable growth, address exchange rate pressures and currency depreciation, and catalyze additional sources of financing.
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