Ghana: Three-Year Arrangement Under the Extended Credit Facility-Request for Modification of Performance Criterion-Staff Report
IMF Staff Country Reports, June 10, 2011
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- Ghana: Three-Year Arrangement Under the Extended Credit Facility-Request for Modification of Performance Criterion-Staff Report
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Bibliographic details
- Published: June 10, 2011
- Series: IMF Staff Country Reports
- DOI: https://doi.org/10.5089/9781455281602.002
Summary and Request Details
- The report gives the details of the Ghanaian authorities’ request for modification of the performance criterion under the Extended Credit Facility (ECF)-supported program.
- The proposed loan involves borrowing at nonconcessional terms.
- The authorities’ request is with the intention to consider modification of the limit on external borrowing at nonconcessional terms in the context of the combined first and second reviews to accommodate new high-return projects, in line with the new IMF policy on debt limits.
Policy Context and Rationale
- Modification sought to the performance criterion concerns the limit on external borrowing at nonconcessional terms.
- The timing for consideration is the combined first and second reviews.
- Objective of the modification: to accommodate new high-return projects.
- Alignment: request is in line with the new IMF policy on debt limits.
Key Findings and Implications
- Proposed borrowing is explicitly at nonconcessional terms.
- The request targets flexibility in external borrowing limits to enable financing of investment projects deemed high-return.
- Implication: a change in the performance criterion would adjust the operational constraint on Ghana’s access to nonconcessional external financing under the ECF arrangement.
Subject Areas and Keywords
- Subject: Asset and liability management, Commodities, Debt limits, External debt, Government debt management, Oil, Public debt, Public financial management (PFM)
- Keywords: CR, Debt limits, ECF, ECF arrangement, Ghanaian authorities, GNPC, government, Government debt management, government of Ghana, government's intention, ISCR, Oil, oil company GNPC