The Executive Board of the International Monetary Fund (IMF) has completed its third review of Ghana’s $3 billion Extended Credit Facility (ECF) which supports the West African country’s ongoing Post-Covid-19 Programme for Economic Growth (PC-PEG). Completion of the third review triggers a release of about $360 million (SDR 269.1 million), bringing Ghana’s total disbursement to $1.9 billion.

A Deputy Managing Director of IMF, Bo Li, said in a statement that Ghana’s performance under the programme has been “generally satisfactory” owing to the “authorities’ economic strategy is delivering on its objectives, with the economy showing clear signs of stabilization.” According to Mr. Bo, Ghana has made progress in strengthening its fiscal position however it needs to stay the course of fiscal policy adjustment including before and after the general election.

He added, “The authorities have maintained a prudent monetary policy stance while taking decisive steps to rebuild foreign reserve buffers. Going forward, maintaining an appropriately tight monetary stance, given the upside risks to inflation, and enhancing exchange rate flexibility are of the essence.”

The IMF maintains that Ghana’s policy and reform efforts under the ECF programme have continued to deliver encouraging results as the country is seeing rapid growth recovery, declining inflation albeit slow, and an improved fiscal and external position. The Fund however gave the country a favourable economic outlook for the medium-term despite downside risks including those stemming from the elections and the challenges in the energy sector.