IMF Board Ends Ghana’s US$3bn Bailout Programme

The Executive Board of the International Monetary Fund (IMF) has approved the final review of Ghana’s three-year US$3 billion Extended Credit Facility (ECF) programme, officially bringing the country’s bailout arrangement to a close after more than three years of economic reforms.

The approval also unlocks a final disbursement of approximately US$371 million to the Bank of Ghana, bringing total disbursements under the programme to the full US$3 billion approved under the facility.

The development was announced in a statement issued by the Ministry of Finance on Monday, describing the completion of the programme as a major milestone in Ghana’s economic recovery following the severe macroeconomic crisis that prompted the country to seek IMF assistance in 2023.

According to the Ministry, the successful conclusion of the programme reflects significant progress in restoring macroeconomic stability through prudent fiscal management, declining inflation, stronger external reserves and the implementation of wide-ranging structural reforms.

It noted that the government had maintained fiscal discipline throughout the programme while pursuing measures aimed at stabilising the economy and creating conditions for sustainable growth.

With the ECF programme concluded, Ghana is expected to transition into a new phase of engagement with the IMF under a 36-month Policy Coordination Instrument (PCI).

Unlike the ECF, the PCI is a non-financing arrangement designed to support the government’s reform agenda by providing policy guidance, monitoring economic performance and reinforcing investor and market confidence without the provision of additional IMF funding.

The Ministry said the new programme would help sustain the gains achieved under the ECF while supporting the implementation of further reforms to strengthen the country’s economic resilience.

Government expressed appreciation to Ghanaians for their patience, resilience and support throughout the implementation of the reform programme, which followed the economic challenges that culminated in the 2022 fiscal crisis.

It also thanked the IMF Executive Board, IMF Management and staff, development partners, civil society organisations and the private sector for their support during the programme.

The Ministry reaffirmed government’s commitment to safeguarding the progress made under the IMF-supported reforms and continuing policies aimed at building a stronger, more resilient and prosperous economy.

 

 

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