Government says it is cautiously optimistic of passing the International Monetary Fund’s (IMF) upcoming Executive Board review of Ghana’s economic programme under the Extended Credit Facility (ECF), scheduled for early July.
If approved, the review will pave the way for a disbursement of approximately $370 million, bringing the total disbursement under the ECF to about to $2.4 billion since May of 2023.
Presidential Advisor on the economy, Seth Terkper Speaking on The Point of View on Channel One TV on Monday, June 30, says the review as pivotal for the country
“We came in as a new government with some experience to complete the fourth review of the IMF programme. It will be going to the board this July. All indications including the staff who came into the country are saying that we think things have gone well and various structural measures and benchmarks and things have been met which means you can be cautiously optimistic that the IMF board will pass your programme and get some injection into the economy ,” he told host Bernard Avle.
The financial lifeline is expected to further anchor Ghana’s ongoing economic recovery and strengthen efforts toward restoring debt sustainability.
The optimism follows the IMF’s confirmation that a staff-level agreement was reached with Ghanaian authorities on April 15 for the fourth programme review. IMF Communications Director Julie Kozack at an earlier press briefing stated that upon approval by its executive board, Ghana will be scheduled to receive about $370 million, bringing total support under the ECF to $2.4 billion since May of 2023.
Market watchers say the anticipated approval is a vote of confidence in Ghana’s fiscal reforms and structural adjustment efforts, which include domestic revenue mobilization, expenditure rationalization, and debt restructuring.
Analysts add that a positive review would likely bolster investor confidence, stabilize the cedi, and further ease inflationary pressures.
