Ghana and the International Monetary Fund (IMF) have reached a staff-level agreement on the fourth review of the country’s $3 billion loan programme, paving the way for an additional $370 million disbursement, subject to approval by the IMF’s Executive Board. The agreement is a significant step in Ghana’s efforts to stabilize its economy, which has faced severe challenges in recent years.
Known for its exports of gold, oil, and cocoa, Ghana has been grappling with an economic crisis, with its key sectors under pressure. Despite these struggles, the country is gradually recovering, with the IMF loan programme playing a crucial role in the restoration of fiscal health and stability.
In a statement released on Tuesday, the IMF acknowledged a decline in Ghana’s economic performance by the end of 2024, citing weaker-than-expected outcomes in key areas. However, the IMF also noted that the government had responded to these setbacks by implementing measures to address policy shortcomings and pursue necessary reforms.
Discussions between the IMF and Ghanaian authorities were focused on additional actions needed to address structural issues in the country’s public financial management system. The IMF stressed the importance of strengthening fiscal management and enhancing the efficiency of public resource allocation to support long-term economic growth.
This agreement signals ongoing confidence in Ghana’s commitment to economic reforms, despite the challenges it faces. If the release of the $370 million is approved, the funds will provide crucial support to the government’s recovery efforts and help restore investor confidence.