The International Monetary Fund (IMF) has outlined its reasons for promptly supporting Ghana during its economic crisis.
In January 2024, the Bank of Ghana acknowledged the receipt of US$600 million as the second instalment for budget support and currency stabilization. This amount is part of the US$1.2 billion received from the $3 billion three-year extended credit facility initiated in May 2022.
The IMF commended Ghana’s adherence to the programme, noting the positive outcomes of reforms and emerging signs of economic recovery. The subsequent evaluation of Ghana’s IMF programme is scheduled for June 2024, anticipating a third instalment of around US$360 million.
In a Citi TV interview on The Point of View with Bernard Avle, IMF Managing Director Kristalina Georgieva clarified that the rapid approval of Ghana’s financial tranches was not solely due to a desire for Ghana’s success but was influenced by the staff-level agreement and other stringent measures that were implemented.
Responding to inquiries about the IMF’s perceived leniency towards Ghana’s programme, she remarked, “Of course, we can see retreat based on desire for short-term gains. This is not what I heard here in Ghana from the President [Akufo-Addo] to the Vice President, [Dr Mahamudu Bawumia] to the Minister of Finance, [Dr Mohammed Amin Adam] and the central bank governor [Ernest Addison], I got one message, Ghana is determined to stay the course.
“Yes, we want to see Ghana succeed, no question about it, it has all the reasons to be successful. But this is not why we came in so quickly to support Ghana. We did it because we quickly reached an agreement on tough measures to be taken for the benefit of the people in Ghana.”
Georgieva conveyed her optimism for the positive impact of the strict measures on Ghanaians, stating, “I want to tell those listening to us that there will be benefits from the pains you are experiencing today. Because a country that is strong in its fiscal position, that doesn’t owe too much to others is a country poised for success.”
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