{
  "title": "IMF Executive Board Completes the Second Review under the Extended Credit Facility Arrangement with Ghana",
  "publication": "IMF News, June 28, 2024",
  "sourceUrl": "https://www.imf.org/en/news/articles/2024/06/28/pr24241-ghana-imf-exec-board-completes-2nd-rev-ecf-arr",
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  "summary": "The IMF Executive Board today completed the second review of Ghana’s 36-month Extended Credit Facility Arrangement. This allows for the immediate disbursement of SDR 269.1 million (about US$360 million).",
  "publishDate": "2024-06-28",
  "sections": [
    {
      "heading": "Key decisions and disbursement",
      "content": "- Executive Board completed the second review of Ghana’s 36-month Extended Credit Facility (ECF) Arrangement (approved May 2023).\n- Immediate disbursement: SDR 269.1 million (about US$360 million).\n- Total disbursements under the arrangement to date: about US$1.6 billion.\n- Full program size: US$3 billion."
    },
    {
      "heading": "Program performance and reform progress",
      "content": "- Overall assessment:\n  - Ghana’s performance under the IMF-supported program has been generally strong.\n  - All quantitative performance criteria for the second review and almost all indicative targets were met.\n  - Key structural reform milestones have advanced, with some delays.\n- Outcomes to date:\n  - Growth has proven more resilient than initially expected.\n  - Inflation has declined rapidly from its 2022 highs.\n  - Fiscal and external positions have improved significantly.\n- Debt restructuring:\n  - Agreement reached with Ghana’s Official Creditor Committee (OCC) on a Memorandum of Understanding (MoU) formalizing the January 2024 agreement in principle (agreement reached on June 11, 2024).\n  - Agreement in principle reached with representatives of Eurobond holders on a restructuring consistent with program parameters, subject to confirmation on comparability of treatment by the OCC."
    },
    {
      "heading": "Fiscal policy stance and commitments",
      "content": "- Recent fiscal performance:\n  - Ghana’s primary fiscal balance improved by over 4 percent of GDP in the prior year.\n- Authorities’ commitments:\n  - Achieve primary fiscal surpluses of ½ percent of GDP in 2024 and 1½ percent of GDP in 2025.\n  - Continue revenue mobilization reforms and streamline non-priority expenditures.\n  - Expand social protection programs to mitigate fiscal adjustment impacts on the most vulnerable.\n  - Strengthen tax administration, expenditure controls and management of arrears, fiscal rules and institutions, and SOEs management (including energy and cocoa sectors).\n- Bank recapitalization:\n  - Ministry of Finance has started recapitalizing state-owned banks consistent with available resources.\n  - BoG ensured implementation of banks’ recapitalization plans."
    },
    {
      "heading": "Monetary and financial sector policies",
      "content": "- Bank of Ghana (BoG) actions:\n  - Maintained a prudent monetary policy stance to sustain rapid reduction in inflation.\n  - Taken steps to rebuild international reserves.\n  - Strengthened measures to preserve financial sector stability.\n- Ongoing priorities:\n  - Maintain an appropriately tight monetary stance.\n  - Enhance exchange rate flexibility.\n  - Timely implementation of IMF advice on safeguards.\n  - Sustain efforts on banks’ recapitalization and cost-effective resolution of legacy issues to ringfence financial sector stability."
    },
    {
      "heading": "Structural reform agenda",
      "content": "- Focus areas:\n  - Ambitious structural reforms to foster private sector investment, enhance governance and transparency.\n  - Recalibrate policy interventions underpinning Ghana’s National Development Policy Framework to reflect post-COVID-19 shocks.\n- Expected impact:\n  - Reforms are key to boosting potential growth, sustainable job creation, and poverty reduction."
    },
    {
      "heading": "Risks and near-term priorities",
      "content": "- Main risks:\n  - Downside risks to the medium-term outlook, including those related to the upcoming general elections (December 2024).\n- Near-term priorities:\n  - Perseverance in macroeconomic policy adjustment and reforms to fully restore macroeconomic stability and debt sustainability.\n  - Finalize comprehensive debt restructuring and ensure comparability of treatment across creditors.\n  - Resolve fiscal slippages risks by keeping domestic revenue mobilization on track and tightening expenditure commitment controls.\n  - Bolster targeted social protection to cushion vulnerable populations."
    },
    {
      "heading": "Selected economic and financial indicators (2022–29) — selected lines from published table",
      "content": "- GDP at constant prices (annual percent change): 2022: 3.8; 2023 Prel.: 2.9; 2024 Proj.: 3.1; 2025 Proj.: 4.4; 2026 Proj.: 4.9; 2027 Proj.: 5.0.\n- Consumer price index (end of period): 2022: 54.1; 2023: 23.2; 2024: 15.0; 2025: 8.0.\n- Consumer price index (annual average): 2022: 31.9; 2023: 39.2; 2024: 19.5; 2025: 11.5.\n- Central government revenue (percent of GDP): 2022: 15.7; 2023: 16.0; 2024: 16.9; 2025: 17.4; 2026: 18.0.\n- Central government expenditure (commitment basis, percent of GDP): 2022: 27.5; 2023: 19.6; 2024: 21.6; 2025: 21.1; 2026: 20.8.\n- Overall balance (commitment basis, percent of GDP): 2022: -11.8; 2023: -3.6; 2024: -4.7; 2025: -3.7; 2026: -3.1; 2027: -2.8.\n- Primary balance (commitment basis, percent of GDP): 2022: -4.3; 2023: -0.3; 2024: 0.5; 2025: 1.5; 2026: 1.3.\n- Non-oil primary balance (commitment basis, percent of GDP): 2022: -6.3; 2023: -1.8; 2024: -1.0; 2025: 0.1; 2026: 0.2; 2027: 0.3; 2028: -0.1.\n- Public debt (gross, percent of GDP): 2022: 92.7; 2023: 82.9; 2024: 82.5; 2025: 79.5; 2026: 76.1; 2027: 72.5; 2028: 69.3; 2029: 66.9.\n- External debt (percent of GDP): 2022: 43.0; 2023: 44.3; 2024: 48.3; 2025: 48.5; 2026: 46.4; 2027: 45.1; 2028: 43.7; 2029: 41.5.\n- Credit to the private sector (commercial banks, percent change): 2022: 31.8; 2023: 10.7; 2024: 22.0; 2025: 13.0; 2026: 14.9.\n- Policy rate (percent, end of period): 2022: 27.0; 2023: 30.0.\n- Current account balance (percent of GDP): 2022: -2.3; 2023: -1.4; 2024: -2.5; 2025: -2.0; 2026: -2.2; 2027: -2.1.\n- BOP financing gap (US$ million): 2022: 3,364; 2023: 3,098; 2024: 3,647; 2025: 1,769; 2026: 1,565; 2027: 1,116; 2028: 318.\n- Financing pledges/assistance (US$ million, selected): IMF: 600; 1,320; 720; 360; 0. World Bank: 27; 679; 428; 374. AfDB: 60; 44.\n- Arrears (US$ million): arrears to commercial external creditors: 1,841; arrears to official bilateral creditors: 836.\n- Exceptional financing to cover residual financing gap (US$ million): 1,055; 2,499; 1,035.\n- Gross international reserves (program, US$ million): 1,454; 3,661; 5,116; 6,851; 7,604; 9,165; 10,911; 12,043.\n- Gross international reserves (in months of prospective imports): 0.7; 1.7; 2.2; 2.8; 4.0; 4.2.\n- Nominal GDP (millions of GHc): 2022: 614,336; 2023: 841,633; 2024: 1,020,180; 2025: 1,183,394; 2026: 1,339,842; 2027: 1,518,046; 2028: 1,715,739; 2029: 1,937,351.\n- Population Growth Rate (percentage): 2.6.\n\nInternational Monetary Fund press release, June 28, 2024.\n\n---\n\n\n References\n\n- https://www.imf.org/-/media/images/imf/bios/imfboard.jpg\n- The Executive Board\n- Ghana and the IMF\n- Frequently Asked Questions on Ghana\n- Press Releases\n- PRESS CENTER\n- Extended Credit Facility\n- by the Board in May 2023\n- http://www.IMF.org/external/np/sec/misc/qualifiers.htm\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2024/06/28/pr24241-ghana-imf-exec-board-completes-2nd-rev-ecf-arr"
    }
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    "Published: June 28, 2024",
    "Executive Board completed the second review of Ghana’s 36-month Extended Credit Facility (ECF) Arrangement (approved May 2023).",
    "Immediate disbursement: SDR 269.1 million (about US$360 million).",
    "Total disbursements under the arrangement to date: about US$1.6 billion.",
    "Full program size: US$3 billion.",
    "Overall assessment:",
    "Outcomes to date:",
    "Debt restructuring:",
    "Recent fiscal performance:",
    "Authorities’ commitments:",
    "Bank recapitalization:",
    "Bank of Ghana (BoG) actions:",
    "Ongoing priorities:",
    "Focus areas:",
    "Expected impact:",
    "Main risks:",
    "Near-term priorities:",
    "GDP at constant prices (annual percent change): 2022: 3.8; 2023 Prel.: 2.9; 2024 Proj.: 3.1; 2025 Proj.: 4.4; 2026 Proj.: 4.9; 2027 Proj.: 5.0.",
    "Consumer price index (end of period): 2022: 54.1; 2023: 23.2; 2024: 15.0; 2025: 8.0.",
    "Consumer price index (annual average): 2022: 31.9; 2023: 39.2; 2024: 19.5; 2025: 11.5.",
    "Central government revenue (percent of GDP): 2022: 15.7; 2023: 16.0; 2024: 16.9; 2025: 17.4; 2026: 18.0.",
    "Central government expenditure (commitment basis, percent of GDP): 2022: 27.5; 2023: 19.6; 2024: 21.6; 2025: 21.1; 2026: 20.8.",
    "Overall balance (commitment basis, percent of GDP): 2022: -11.8; 2023: -3.6; 2024: -4.7; 2025: -3.7; 2026: -3.1; 2027: -2.8.",
    "Primary balance (commitment basis, percent of GDP): 2022: -4.3; 2023: -0.3; 2024: 0.5; 2025: 1.5; 2026: 1.3.",
    "Non-oil primary balance (commitment basis, percent of GDP): 2022: -6.3; 2023: -1.8; 2024: -1.0; 2025: 0.1; 2026: 0.2; 2027: 0.3; 2028: -0.1.",
    "Public debt (gross, percent of GDP): 2022: 92.7; 2023: 82.9; 2024: 82.5; 2025: 79.5; 2026: 76.1; 2027: 72.5; 2028: 69.3; 2029: 66.9.",
    "External debt (percent of GDP): 2022: 43.0; 2023: 44.3; 2024: 48.3; 2025: 48.5; 2026: 46.4; 2027: 45.1; 2028: 43.7; 2029: 41.5.",
    "Credit to the private sector (commercial banks, percent change): 2022: 31.8; 2023: 10.7; 2024: 22.0; 2025: 13.0; 2026: 14.9.",
    "Policy rate (percent, end of period): 2022: 27.0; 2023: 30.0.",
    "Current account balance (percent of GDP): 2022: -2.3; 2023: -1.4; 2024: -2.5; 2025: -2.0; 2026: -2.2; 2027: -2.1.",
    "BOP financing gap (US$ million): 2022: 3,364; 2023: 3,098; 2024: 3,647; 2025: 1,769; 2026: 1,565; 2027: 1,116; 2028: 318.",
    "Financing pledges/assistance (US$ million, selected): IMF: 600; 1,320; 720; 360; 0. World Bank: 27; 679; 428; 374. AfDB: 60; 44.",
    "Arrears (US$ million): arrears to commercial external creditors: 1,841; arrears to official bilateral creditors: 836.",
    "Exceptional financing to cover residual financing gap (US$ million): 1,055; 2,499; 1,035.",
    "Gross international reserves (program, US$ million): 1,454; 3,661; 5,116; 6,851; 7,604; 9,165; 10,911; 12,043.",
    "Gross international reserves (in months of prospective imports): 0.7; 1.7; 2.2; 2.8; 4.0; 4.2.",
    "Nominal GDP (millions of GHc): 2022: 614,336; 2023: 841,633; 2024: 1,020,180; 2025: 1,183,394; 2026: 1,339,842; 2027: 1,518,046; 2028: 1,715,739; 2029: 1,937,351.",
    "Population Growth Rate (percentage): 2.6.",
    "[https://www.imf.org/-/media/images/imf/bios/imfboard.jpg](https://www.imf.org/-/media/images/imf/bios/imfboard.jpg)",
    "[The Executive Board](https://www.imf.org/external/np/sec/memdir/eds.aspx)",
    "[Ghana and the IMF](http://www.imf.org/external/country/GHA/index.htm)",
    "[Frequently Asked Questions on Ghana](https://imf.org/Ghana/qandas)",
    "[Press Releases](https://www.imf.org/en/News/SearchNews)",
    "[PRESS CENTER](http://presscenter.imf.org/)",
    "[Extended Credit Facility](https://www.imf.org/en/About/Factsheets/Sheets/2023/Extended-Credit-Facility-ECF)",
    "[by the Board in May 2023](https://www.imf.org/en/News/Articles/2023/05/17/pr23151-ghana-imf-executive-board-approves-extended-credit-facility-arrangement-for-ghana)",
    "[http://www.IMF.org/external/np/sec/misc/qualifiers.htm](http://www.imf.org/external/np/sec/misc/qualifiers.htm)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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