IMF reaches Staff-Level Agreement on a $3bn, 3yrs ECF with Ghana

IMF staff and the Ghanaian authorities have reached a staff-level agreement on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion.

The authorities’ strong reform program aims at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.

To support the objective of restoring public debt sustainability, the authorities have launched a comprehensive debt operation.

“In addition to a frontloaded fiscal consolidation and measures to reduce inflation and rebuild external buffers, the program envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks,” the IMF said in a post on its website.

An IMF staff team led by Stéphane Roudet, Mission Chief for Ghana, has been in the country since December 1, in continuation of discussions with Ghanaian authorities on the country’s post-COVID-19 programme for economic growth and associated policies and reforms that could be supported by a new IMF lending arrangement.

A joint press conference will be held at 10am in the capital, Accra to make the announcement.

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Mr. Stéphane Roudet, Mission Chief for Ghana in a statement following the end of the visit today said “the Bank of Ghana will continue to strengthen its monetary policy framework and promote exchange rate flexibility to rebuild external buffers. As part of the authorities’ debt strategy, a domestic debt exchange has been launched. The authorities are committed to taking the necessary mitigation measures to ensure financial sector stability is preserved.”

The IMF staff held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, and their teams, as well as representatives from various government agencies.

Staff expressed their gratitude to the Ghanaian authorities, Parliament’s Finance Committee, and all the private sector, trade union, and civil society representatives “for their open and constructive engagement over the past few months.”