IMF: Thank you for your patience – Finance Minister to Ghanaians as government expects $360 million

The Finance Minister expressed his appreciation to Ghanaians for the country’s fulfilment of conditions to secure the results of the International Monetary Fund (IMF) bailout.

According to Dr Mohammed Amin Adam, this process would not have been possible without the support of various stakeholders, including the general public.

“Let me also take this opportunity to thank the people of Ghana for their patience and understanding,” he said.

This came after the IMF Executive Board completed the second review of the 36-month, $3 billion Extended Facility Facility (ECF) for Ghana.

Approved in May 2023, the review was a critical checkpoint for the country.

The completion of this review meant the immediate disbursement of approximately $360 million, bringing Ghana’s total disbursements under the agreement to approximately $1.6 billion.

In the video, the Minister thanked “His Excellency the President for his strong leadership and direction that has helped implement various policies and measures under the overseas program. We also wish to commend the IMF, the World Bank and all other development partners for their support to Ghana.”

In light of this new development, the minister was “very confident that we can make this journey together and restore an economy that is strong enough to deliver benefits and growth across the country.”

At the meeting, Deputy Managing Director Kenji Okamura announced: “Ghana’s performance under the ECF-supported reform programme has been generally good.

The authorities’ strategy to restore macroeconomic stability and reduce the vulnerability to debt is bearing fruit, with clear signs of stabilization emerging.

Ghana’s economic reform program has indeed achieved its goals. After facing serious economic and financial difficulties in 2022, the IMF-backed program has provided the government with a credible anchor.

It helped to adjust macroeconomic policies and implement reforms aimed at restoring macroeconomic stability and debt sustainability. The foundations were laid for higher and more inclusive economic growth.

“These efforts are paying off,” Okamura noted. “Growth is proving more resilient than initially expected, inflation is falling at a faster pace, and both the fiscal and external positions are improving.”

Despite some delays, Ghana has made significant progress on key milestones in structural reforms. The Ghanaian authorities have also advanced a comprehensive debt restructuring.

On June 11, 2024, they reached an agreement with Ghana’s Official Creditors Committee (OCC) under the G20 Joint Memorandum of Understanding Framework, formalizing an agreement in principle on debt treatment.

Kenji Okamura emphasized: “This debt treatment agreement, in line with the program parameters, provided the necessary financing guarantees to complete the second review under the ECF Arrangement.”

Moreover, Ghana’s underlying fiscal balance improved by more than 4 percent of GDP last year.

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