IMF Board Set to Decide on Ghana’s $360 Million Disbursement on December 2
Finance Minister Confident in Meeting Economic Goals Amid Global Challenges
- The IMF Board will meet on December 2 to assess Ghana’s Third Programme Review
- The disbursement aims to support the government's budget and balance of payments
- Strong response from investors indicates growing confidence in Ghana’s economic reforms
Finance Minister Dr. Mohammed Amin Adam announced that the IMF Board will convene on December 2, 2024, to assess Ghana’s Third Programme Review.
This meeting could unlock a vital $360 million for the Bank of Ghana, aimed at bolstering the government’s budget and addressing balance of payments needs.
This anticipated review follows a staff-level agreement reached earlier this month after the IMF’s assessment of data up to June 2024. Dr. Amin Adam highlighted that this disbursement would elevate total funds received under the IMF programme to $1.92 billion.
Speaking at a press briefing in Washington, DC, during the Annual IMF/World Bank Meetings, Dr. Amin Adam affirmed that Ghana has fulfilled all prerequisites for the upcoming approvals and disbursements.
He expressed confidence that the incoming $360 million from the IMF, along with an additional $300 million from the World Bank, will enhance Ghana’s reserves and stabilize the Ghanaian cedi as the new year approaches. “The Bank of Ghana already has robust reserves, and these new inflows will empower the Central Bank to maintain stability,” he stated.
Dr. Amin Adam reassured businesses, emphasizing that there’s no reason for concern regarding the availability of foreign exchange. He noted that the funds are not only crucial but also signify to investors that the government is actively working to stabilize the economy.
During investor meetings in Washington, there was an encouraging response, with some investors showing interest in re-entering Ghana’s domestic bond market, pending further review.
Addressing critiques of the government’s economic management over the past four years, Dr. Amin Adam asserted, “Ghana’s economy has made a significant recovery compared to two years ago, demonstrating marked improvements in growth, exchange rate stability, and inflation.”
He welcomed the IMF’s revised growth forecast for Ghana, adjusting the 2024 target from 3 percent to 4 percent. Dr. Amin Adam noted, “We are optimistic Ghana will exceed this revised target due to recent investments bearing fruit,” though he added that the government will keep the original 3 percent projection in the 2024 Budget for the time being.
