Ghana will undergo periodic assessments by the International Monetary Fund (IMF) as part of its $3 billion loan agreement with the institution, according to Dr. Leandro Medina, the IMF’s Resident Representative in Ghana.
He said that every six months, the IMF staff will review Ghana’s progress on its economic program and submit a report to the Executive Board for approval before releasing the next tranche of funds. Dr. Medina made these remarks on PM Express Business Edition with George Wiafe on May 25, 2023.
He added that the first review is expected to take place in November 2023. Meanwhile, Dr. Mohammed Amin Adam, the Minister of State at the Finance Ministry, said that Ghana will receive about $1.2 billion by the end of 2023 under the IMF program.
The IMF program is based on Ghana’s Post COVID-19 Program for Economic Growth (PC-PEG), which aims to restore macroeconomic stability and debt sustainability and includes wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth.
The program was approved by the IMF Executive Board in May 2023 after a staff-level agreement was reached in December 2022. The program also requires Ghana to secure timely debt restructuring agreements with external creditors to ease its financing constraints and reduce its interest payments on external debt to not more than 18% of annual revenue by 2028.
The program also focuses on protecting the vulnerable, preserving financial stability, and encouraging private investment and growth.