IMF Approves Ghana’s $360 Million Third Tranche for Post COVID-19 Programme

The International Monetary Fund (IMF) has approved Ghana’s $360 million third tranche for the implementation of the country’s Post COVID-19 Programme for Economic Growth (PC-PEG). This approval comes after a successful completion of the second review of the $3 billion three-month Extended Credit Facility (ECF) arrangement, as well as recent debt restructuring with external creditors.

The disbursement of the $360 million brings Ghana’s total disbursements under the arrangement to about $1.6 billion. The IMF noted that all quantitative performance criteria for the second review were met, with good progress made on key structural reform milestones.

The Deputy Managing Director of the IMF, Kenji Okamura, emphasized the importance of maintaining macroeconomic policy adjustment and reforms for sustainable stability and debt sustainability, especially during the upcoming electoral period. He urged the government to focus on domestic revenue mobilization, expenditure control, tax administration, and improving State-Owned Enterprises management.

Businesses, manufacturers, and traders have welcomed the approval of the third tranche, urging the government to prioritize economic stability and reduce debt accumulation. They emphasized the need for policies to reduce inflation, stabilize the depreciation of the Cedi, and create a more business-friendly environment.

Mr. Seth Twum-Akwaboah, CEO of the Association of Ghana Industries, highlighted the importance of solidifying economic gains to boost confidence in the economy. He stressed the need for policies that support the growth of productive sectors to generate revenue for debt repayment.

Dr. Joseph Obeng, President of the Ghana Union of Traders Association (GUTA), expressed confidence that the $360 million tranche would help stabilize the economy and support business growth. He called for interventions to inspire hope and reduce speculation in the foreign exchange market.

Overall, the approval of the third tranche by the IMF is seen as a positive development for Ghana’s economy, with stakeholders emphasizing the importance of sound economic policies and reforms to ensure sustainable growth and debt management.