IMF Agrees to Disburse $370M Loan to Ghana

The International Monetary Fund (IMF) has reached a staff-level agreement with Ghana on the fourth review of its $3 billion loan program.

Upon board approval, this will unlock a $370 million disbursement to support the country’s recovery.

Ghana, a major producer of gold, oil, and cocoa, is emerging from one of its worst economic crises in decades, which led to a significant debt restructuring effort.

The IMF noted that by the end of 2024, Ghana’s performance under the program had weakened, citing delayed reforms, missed targets, rising inflation, and a primary budget deficit of 3.25% of GDP—far off from the targeted surplus of 0.5%.

However, recent corrective actions and the adoption of a new budget aiming for a 1.5% primary surplus have helped restore momentum.

The central bank has tightened monetary policy and is reviewing its liquidity operations to curb inflation.

Although former President Mahama had pledged to renegotiate the IMF deal during campaigns, his administration has since stepped back from that position.

 

 

 

© WAVN