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\n<\/div>\nThe International Monetary Fund (IMF) on Wednesday completed the 7th<\/sup> and 8th<\/sup> reviews under the Extended Credit Facility (ECF)-supported arrangement.<\/span><\/p>\n The completion of the two final reviews on March 20, 2019, will make available to Ghana the cumulative amount of about $185.2 million, the IMF said in a release issued on Wednesday.<\/span><\/p>\n <\/p>\n \u201cConsidering the authorities\u2019 [resolve] to tackle difficult reforms, the Executive Board also approved the authorities\u2019 request for a waiver of the nonobservance of a few program targets,\u201d the IMF said in the release.<\/span><\/p>\n Ghana\u2019s three-year arrangement was approved on April 3, <\/span>2015<\/span> for about US$925.9 million or 180 per cent of quota at the time of approval of the arrangement. It was extended for an\u00a0<\/span>additional<\/span> year on August 30, <\/span>2017,<\/span><\/span> and is to end on April 2, 2019.<\/span><\/p>\n <\/p>\n The arrangement aimed to restore debt sustainability and macroeconomic stability in the country to foster a return to high growth and job <\/span>creation<\/span><\/span>\u00a0while protecting social spending.<\/span><\/p>\n Following the Executive Board\u2019s discussion, <\/span>Mr\u00a0<\/span><\/span>Tao Zhang, Deputy Managing Director and Acting Chair, issued the following statement:<\/span><\/p>\n \u201cThe authorities have achieved significant macroeconomic gains over the course of the <\/span>ECF-supported<\/span> program, with rising growth, <\/span>single-digit<\/span> inflation, fiscal consolidation, and banking sector clean-up. <\/span>Continued<\/span><\/span> macroeconomic adjustment should underpin these improvements, as the 2020 elections approach.<\/span><\/p>\n \u201cIn a sign of the authorities\u2019 commitment to fiscal consolidation, the end-2018 fiscal targets were met. Sustained fiscal discipline is needed to reduce financing needs and anchor debt dynamics. As stronger revenue mobilization is critical, the submission of the tax exemption bill is <\/span>welcome<\/span><\/span>\u00a0but needs to be complemented by efforts to strengthen tax compliance. Fiscal space is needed to support priority programs, while off-budget expenditures should be avoided.<\/span><\/p>\n <\/p>\n \u201cProgress on structural reforms needs to be intensified. Plans to improve public financial management and supervision of state-owned enterprises (SOEs), the establishment of a fiscal council, and the fiscal rule are welcome. Stronger monitoring of fiscal operations, including for SOEs, will help mitigate fiscal risks.<\/span><\/p>\n \u201cDebt management has improved, though reliance on foreign investors has increased Ghana\u2019s exposure to market sentiment and exchange rate risk. Debt collateralization and revenue monetization should be limited to avoid encumbering revenues. Planned infrastructure projects should be transparently managed, be consistent with debt sustainability, and ensure value for money.<\/span><\/p>\n \u201cWhile achieving single-digit inflation is commendable, monetary policy should remain vigilant to guard against upside risks to inflation, also stemming from exchange rate developments. Rebuilding international reserve buffers, including through careful foreign exchange liquidity management, is welcome and critical to <\/span>support<\/span><\/span> greater resilience to external shocks.<\/span><\/p>\n <\/p>\n \u201cThe authorities deserve praise for strengthening the banking sector and for resolving nine banks. Completing the financial sector clean-up, as planned, will support the provision of adequate and affordable credit to the economy.<\/span><\/p>\n \u201cThe Fund congratulates the authorities for successfully completing the ECF supported program and stands ready to support Ghana in its quest for economic prosperity.\u201d<\/span><\/p>\n <\/p>\n<\/div>\n