The IMF executive board voted Monday to approve the immediate disbursement of around $360 million to help support Ghana’s economy, days before Ghanaians head to the polls to pick their next president.
“Ghana’s performance under the program has been generally satisfactory, and reform efforts are paying off,” the International Monetary Fund said in a statement announcing the board’s approval.
It further stated that while inflation had decreased and economic growth was rebounding, “good progress” had been achieved on debt restructuring.
Ghana, a major producer of cocoa, gold, and oil, experienced a severe financial crisis in 2022 that compelled the government to negotiate a $3 billion, three-year relief package with the IMF and default on its external debt.
Ahead of Ghana’s presidential election on December 7, which will pit incumbent President John Mahama of the NDC party against incumbent Vice President Mahamudu Bawumia of the ruling NPP party, the economy has become a crucial topic.
The board’s approval of the latest loan review unlocks around $360 million, bringing the total disbursed since the loan agreement was approved in May 2023 to around $1.9 billion.
“Looking ahead, staying the course of fiscal policy adjustment — including before and after the upcoming elections — and creating room to enhance social programs is paramount to put public finances on a sustainable path and reduce financing needs,” IMF deputy managing director Bo Li said in a statement.
Li added it was also important to cushion “the vulnerable from the impact of fiscal adjustment.”
Ghana’s GDP is expected to rise by 4.0 percent this year and 4.4 percent in 2025, according to the IMF.
By the end of 2025, inflation is predicted to have decreased from its current annual rate of 18.0 percent to 8.0 percent.
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