IMF stresses Ghana's commitment to economic program amid challenges

The International Monetary Fund (IMF) has reiterated the significance of Ghana's steadfast adherence to its bailout program to fully reap its benefits.

Emphasizing the need for effective implementation of structural reforms, especially following the disbursement of the $600 million second tranche to the government, the Bretton Woods Institution has underscored the critical role of commitment in Ghana's economic recovery.



Read full article/> However, Ghana's efforts to engage the IMF in discussions regarding anticipated revenue shortfalls, stemming from the planned suspension of the Value-Added Tax (VAT) on electricity, have faced obstacles due to staunch opposition from the Trades Union Congress (TUC).

Despite these challenges, Abebe Selassie, the IMF's Director for Africa, has emphasized the imperative for Ghana to strictly adhere to the agreed-upon austerity measures to navigate through the economic crisis successfully. He highlighted the fundamental importance of these measures for Ghana's economic prosperity, urging the country to stay the course outlined in the program designed to span three to four years.

While acknowledging Ghana's positive performance within the program, Selassie noted significant reforms yielding tangible results and signs of economic stabilization emerging. He commended Ghana's effective program implementation, citing the recent board review following the government's policy interventions to address previous imbalances.

In late January, the Bank of Ghana confirmed the receipt of the $600 million second tranche, intended for budget support and currency stabilization. This disbursement brings the total to $1.2 billion out of the approved $3 billion under the three-year extended credit facility granted in May 2022.

The upcoming review of Ghana's IMF program scheduled for June 2024 aims to secure the third tranche of approximately $360 million. The IMF remains committed to supporting Ghana in line with program implementation, signaling continued assistance and collaboration in navigating economic challenges.