The International Monetary Fund has approved $3 billion in financial support for Ghana’s recovery from the current economic crisis.

The deal has been very much expected due to the current state of the country’s macroeconomic indicators, the balance of payments, inflation, and the depreciation of the local currency.

The programme is expected to restore macroeconomic stability and debt sustainability while laying the foundations for higher and more inclusive growth.

According to the International Monetary Fund, the programme “has been designed around two key anchors: (i) achieving moderate risk of debt distress over the medium term, and (ii) rebuilding BoG’s international reserves to 3 months of imports by the end of the program.”

It also noted that this requires the simultaneous implementation of ambitious and lasting fiscal adjustment—to complement the ongoing comprehensive debt restructuring—and appropriately tight monetary and flexible exchange rate policies.

Also, the program will strive to address structural weaknesses that contributed to the current crisis, with responsible fiscal and monetary policies embedded in clear and binding multi-year frameworks to avoid a repeat of previous excessive policy fluctuations.

The fund however noted that the government will be encouraged to pursue fiscal consolidation.

“The authorities also intend to foster a fair distribution of the adjustment burden, with measures to mitigate the impact on the most vulnerable, and to implement growth-enhancing structural reforms,” it added.

SSD/MA