{
  "title": "IMF Executive Board Completes the Fourth Review under the Extended Credit Facility Arrangement with Ghana",
  "publication": "IMF News, July 7, 2025",
  "sourceUrl": "https://www.imf.org/en/news/articles/2025/07/07/pr-25242-ghana-imf-completes-the-4th-review-under-the-ecf-arrange",
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  "summary": "The Executive Board of the International Monetary Fund (IMF) today completed the fourth review of the US$3 billion, 36-month Extended Credit Facility (ECF) Arrangement, which was approved by the Board in May 2023.",
  "publishDate": "2025-07-07",
  "sections": [
    {
      "heading": "Overview and action taken",
      "content": "- The Executive Board completed the fourth review of the US$3 billion, 36-month Extended Credit Facility (ECF) Arrangement approved in May 2023.\n- Completion of the fourth ECF review allows for an immediate disbursement of about US$367 million (SDR 267.5 million), bringing Ghana’s total disbursements under the arrangement to about US$2.3 billion.\n- Press Release No. 25/242; date: July 7, 2025."
    },
    {
      "heading": "Recent macroeconomic outcomes",
      "content": "- Growth:\n  - 2024 and Q1 2025 growth was higher than expected, driven by mining, agricultural, ICT, manufacturing, and construction.\n  - GDP at constant prices (annual percentage change, selected series): 2023 actual 3.1; 2024 prelim. 5.7; 2025 proj. 4.0; 2026 proj. 4.8; 2027 proj. 4.9; 2028 proj. 5.0.\n  - Non-extractive GDP: 2023 actual 3.3; 2024 prelim. 5.1; 2025 proj. 3.6; 2026 proj. 4.6.\n  - Extractive GDP: 2023 actual 1.7; 2024 prelim. 9.4; 2025 proj. 7.0; 2026 proj. 5.9; 2027 proj. 4.7.\n  - Real GDP per capita: 2023 actual 1.2; 2024 prelim. 3.7; 2025 proj. 2.1; 2026 proj. 2.9; 2027 proj. 3.2.\n- Inflation and price measures:\n  - GDP deflator: 2023 actual 40.1; 2024 prelim. 25.4; 2025 proj. 17.0; 2026 proj. 7.8; 2027 proj. 6.8; 2028 proj. 6.9; 2029 proj. 7.6.\n  - Consumer price index (end of period): 2023 actual 23.2; 2024 prelim. 23.8; 2025 proj. 12.0; 2026 proj. 8.0.\n  - Consumer price index (annual average): 2023 actual 39.2; 2024 prelim. 22.9; 2025 proj. 17.3; 2026 proj. 9.3.\n- External sector:\n  - Current account balance (percent of GDP): 2023 actual -1.6; 2024 prelim. 1.1; 2025 proj. 1.8; 2026 proj. 1.4; 2027 proj. 1.3; 2028 proj. 0.5.\n  - Gross international reserves (program, US$ million): 2023 3,661; 2024 6,404; 2025 8,366; 2026 7,926; 2027 9,585; 2028 11,358; 2029 13,614; 2030 14,948.\n  - Reserves in months of prospective imports: 2.6 (2023); 3.0 (2024); 3.5 (2025); 3.9 (2026); 4.5 (2027)."
    },
    {
      "heading": "Program performance and slippages",
      "content": "- Despite stronger growth and improved external position, program performance deteriorated markedly at end-2024:\n  - Causes: pre-election fiscal slippages and a large accumulation of payables; inflation above program targets; delays in reforms across fiscal, financial, and energy sectors.\n  - Preliminary fiscal data point to slippages in the run-up to the 2024 general elections.\n- The deterioration included delays in several reforms and policy actions across the fiscal, financial, and energy sectors."
    },
    {
      "heading": "Corrective measures and fiscal stance",
      "content": "- New authorities enacted decisive corrective measures to secure program targets and keep reforms on track:\n  - Enacted a strong budget and public financial management reforms, including strengthening budget controls and undertaking a comprehensive audit of payables accumulated end-2024.\n  - Adopted measures to achieve a 1½ percent of GDP fiscal primary surplus in 2025 through additional revenue mobilization and expenditure rationalization while protecting the vulnerable.\n  - Emphasis on strengthening revenue administration, bolstering public financial management, and improving State-Owned Enterprises (SOEs) management—particularly addressing energy and cocoa sector challenges and related arrears.\n- Central government budget (percent of GDP, projections assume full debt restructuring):\n  - Revenue: 2023 actual 15.2; 2024 prelim. 15.9; 2025 proj. 16.6; 2026 proj. 16.8; 2027 proj. 16.9.\n  - Expenditure (commitment basis): 2023 18.5; 2024 18.7; 2025 18.6; 2026 18.9; 2027 19.2; 2028 19.6.\n  - Overall balance (commitment basis): 2023 -3.4; 2024 -7.3; 2025 -2.8; 2026 -2.1; 2027 -1.8; 2028 -2.0; 2029 -2.2; 2030 -2.6.\n  - Primary balance (commitment basis): 2023 -0.3; 2024 -3.3; 2025 1.5; 2026 1.0.\n  - Non-oil primary balance (commitment basis): 2023 -1.7; 2024 -5.0; 2025 0.4; 2026 0.3; 2027 0.2; 2028 0.1; 2029 -0.4."
    },
    {
      "heading": "Monetary policy and financial sector measures",
      "content": "- Bank of Ghana (BoG) actions:\n  - Tightened monetary policy stance to sustain continued reduction in inflation.\n  - Successfully rebuilt international reserves.\n  - Implemented risk containment measures to support banking system stability.\n  - Intensified monitoring and escalated measures at weak, undercapitalized banks to promote timely recapitalization; strengthen risk management frameworks and practices, including to reduce NPLs; and ensure effective governance.\n- Money and credit (selected indicators):\n  - Credit to the private sector (commercial banks): 2023 actual 10.7; 2024 prelim. 26.3; 2025 proj. 24.7; 2026 proj. 16.1; 2027 proj. 16.3.\n  - Broad money (M2+): 2023 actual 38.7; 2024 prelim. 31.9; 2025 proj. 23.4; 2026 proj. 13.0; 2027 proj. 12.1; 2028 proj. 12.3.\n  - Base money: 2023 actual 47.8; 2024 prelim. 16.2; 2025 proj. -1.1; 2026 proj. 12.7; 2027 proj. 14.8; 2028 proj. 9.8.\n  - Policy rate (end of period): 2023 30.0; 2024 27.0; 2025 N.A.\n- Financial-sector priorities going forward:\n  - Maintain appropriately tight monetary stance until inflation returns to target; reduce BoG footprint in the foreign exchange market; allow for greater exchange rate flexibility and adopt a formal internal FX intervention policy framework.\n  - Fully implement the plan to strengthen NIB; finalize reform strategy to support state-owned banks’ viability and sustainability; develop contingency plans for weak banks that fail to recapitalize.\n  - Improve crisis management and resolution framework, enhance financial-sector safety nets, and address legacy issues at specialized deposit-taking institutions."
    },
    {
      "heading": "Debt restructuring, financing needs, and ratings",
      "content": "- Debt restructuring progress:\n  - Memorandum of Understanding (MoU) with Ghana’s Official Creditors Committee (OCC) under the G20 Common Framework has been signed by all parties; focus shifted to finalizing bilateral agreements to implement the MoU.\n  - Authorities pursuing good-faith efforts to reach agreements with commercial creditors in line with program parameters and comparability of treatment principles.\n- Financing and BOP items (US$ million, as reported):\n  - BOP financing gap: 2024 3,364; 2025 13,741; 2026 9,124; 2027 3,659; 2028 0.\n  - IMF flows: 2024 600; 2025 1,320; 2026 720; 2027 360.\n  - World Bank flows: 2024 27; 2025 390; 2026 886; 2027 487.\n  - AfDB flows: 2024 60; 2025 44.\n  - Debt Restructuring Related Flows: 2024 2,677; 2025 12,031; 2026 7,474; 2027 2,812.\n  - Note: Additional financing needed to gradually bring reserves to at least 3 months of imports by 2026. The large 2024-2026 financing gaps result from debt restructuring accounting, with both debt deferral and the nominal value of the debt exchanges included here.\n- Outcome on credit ratings:\n  - Against the backdrop of policy actions and progress on debt restructuring, Ghana’s credit rating has been upgraded by key international credit rating agencies."
    },
    {
      "heading": "Structural reforms and longer-term priorities",
      "content": "- Structural reform priorities:\n  - Ambitious reforms to foster private sector investment, enhance governance and transparency, boost potential growth, and underpin sustainable job creation.\n  - Strengthen public financial management, revenue administration, and SOE management, with decisive action in the energy sector to contain fiscal risks and address arrears.\n- Social protection stance:\n  - Fiscal consolidation measures will aim to protect the vulnerable and create space for development priorities and enhanced social safety nets."
    },
    {
      "heading": "Executive comments and program outlook",
      "content": "- Deputy Managing Director Bo Li highlighted:\n  - Authorities have taken bold corrective actions in response to large policy slippages and reform delays at end-2024.\n  - Staying the course of fiscal adjustment and completing debt restructuring are key to ensure fiscal sustainability.\n  - Important priorities include improving tax administration, strengthening expenditure controls, improving SOEs’ efficiency, forcefully addressing energy-sector challenges and arrears, sustaining tight monetary policy until inflation returns to target, reducing BoG FX market footprint, and enhancing financial-sector resilience.\n- Outlook:\n  - Continued implementation of corrective measures, reforms, and debt restructuring is essential to restore macroeconomic stability, debt sustainability, and to support higher and more inclusive growth and poverty reduction.\n\nSource: IMF Executive Board Completes the Fourth Review under the Extended Credit Facility Arrangement with Ghana (Press Release No. 25/242, July 7, 2025).\n\n---\n\n\n References\n\n- Ghana and the IMF\n- Press Releases\n- PRESS CENTER\n- Extended Credit Facility\n- by the Board in May 2023\n- https://www.imf.org/en/home\n\nSource: https://www.imf.org/en/news/articles/2025/07/07/pr-25242-ghana-imf-completes-the-4th-review-under-the-ecf-arrange"
    }
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    "Published: July 7, 2025",
    "The Executive Board completed the fourth review of the US$3 billion, 36-month Extended Credit Facility (ECF) Arrangement approved in May 2023.",
    "Completion of the fourth ECF review allows for an immediate disbursement of about US$367 million (SDR 267.5 million), bringing Ghana’s total disbursements under the arrangement to about US$2.3 billion.",
    "Press Release No. 25/242; date: July 7, 2025.",
    "Growth:",
    "Inflation and price measures:",
    "External sector:",
    "Despite stronger growth and improved external position, program performance deteriorated markedly at end-2024:",
    "The deterioration included delays in several reforms and policy actions across the fiscal, financial, and energy sectors.",
    "New authorities enacted decisive corrective measures to secure program targets and keep reforms on track:",
    "Central government budget (percent of GDP, projections assume full debt restructuring):",
    "Bank of Ghana (BoG) actions:",
    "Money and credit (selected indicators):",
    "Financial-sector priorities going forward:",
    "Debt restructuring progress:",
    "Financing and BOP items (US$ million, as reported):",
    "Outcome on credit ratings:",
    "Structural reform priorities:",
    "Social protection stance:",
    "Deputy Managing Director Bo Li highlighted:",
    "Outlook:",
    "[Ghana and the IMF](http://www.imf.org/external/country/GHA/index.htm)",
    "[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)",
    "[https://www.imf.org/en/home](https://www.imf.org/en/home)"
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