An International Monetary Fund (IMF) staff team has reached a staff-level agreement on the second review of Ghana’s loan-support programme, allowing the Executive Board to consider and approve about US$360 million for the country.

This comes following a conclusion of meetings held between Ghanaian Authorities and the IMF staff team between April 2 and April 12, 2024 in Accra on the country’s Extended Credit Facility arrangement.

At the end of the mission, Mr Stéphane Roudet, Mission Chief for Ghana, in a statement said: “Upon completion of the Executive Board review, Ghana would have access to SDR 269.1 million (about US$ 360 million).”

That would bring the total IMF financial support disbursed under the ECF arrangement since May 2023 to SDR 1,171.9 million (about US$ 1,560 million), the statement noted.

“This staff-level agreement is subject to IMF Management approval and Executive Board consideration once the necessary financing assurances have been received,” Mr Roudet said in the statement.

However, the Mission Chief noted that given Ghana’s strong progress under the IMF-supported programme, the next key step for the country is to reach an agreement with its official bilateral creditors.

“We look forward to the authorities’ continued efforts to reach an agreement with all creditors in line with programme parameters,” he said.

On Ghana’s performance under the IMF-supported programme, the Mission Chief stated that most quantitative targets had been met, with good progress made on the key structural reform milestones.

“The authorities’ policies and reforms to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth are already generating positive results,” he stated.

Providing some figures to that effect, he stated that the fiscal primary balance on a commitment basis improved by over four percentage points of Gross Domestic Product (GDP) in 2023.

Mr Roudet also indicated that the country was on track to achieving a fiscal primary surplus of 0.5 per cent of GDP in 2024.

“Spending has remained within budget limits, while the authorities have significantly expanded social protection programs to help mitigate the impact of the crisis on the most vulnerable,” he stated.

“Ghana has met its non-oil revenue mobilisation target, while making progress in implementing ambitious structural fiscal reforms to bolster domestic revenues, strengthen public financial and debt management, and enhance transparency,” he noted.

Mr Roudet also stated that Ghana’s external sector has improved significantly, with international reserve accumulation ahead of program objectives, financial stability has been preserved, with banks posting solid profits in 2023.

IMF staff held meetings with Finance Minister, Dr Mohammed Amin Adam, Bank of Ghana Governor, Dr Ernest Addison, and their teams, representatives from various government agencies, and other stakeholders.