IMF Board approves $191m for Ghana under Extended Credit Facility

The Executive Board of the International Monetary Fund (IMF) after completing the fifth and sixth reviews under the Extended Credit Facility (ECF) for Ghana has on Monday April 30, 2018 approved $191 million for the country bringing the total under the Facility to $764.1 million.

The three-year facility was approved on April 3, 2015 for a total of $955.2 million or 180 per cent of quota at the time of approval of the arrangement, the IMF says in a press release.

“It aims to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job creation, while protecting social spending,” it states.

According to the IMF however, during the review, adjustments were made to the programme to ensure that it remains on track and to enhance its prospects of success.

“In this context, the Executive Board also granted waivers, including for deviations in a few programme targets,” it added.

Mr. Tao Zhang, Acting Chair and Deputy Managing Director of the IMF, said: “Implementation of the ECF-supported programme has significantly improved in 2017. Growth has rebounded, the fiscal deficit has declined, leading to a primary surplus for the first time in fifteen years, the external position has strengthened, generating a build-up of external buffers, and key steps have been taken to address fragilities in the financial sector. Reforms should continue to entrench these hard-won gains.”

Zhang also added, “The authorities’ commitment to fiscal discipline and the expenditure restraint shown in 2017 to meet the end-year deficit target are commendable. The government should continue to implement its fiscal consolidation programme, with the adjustment focused mainly on increased domestic revenue mobilization. The recent announcement to enact revenue measures in the context of the mid-year budget review in July is welcome. Such measures will be critical to ensure that Ghana’s fiscal policies can be sustained over time.”

By Emmanuel K. Dogbevi
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