![\"\"](\"http:\/\/www.ghanamma.com\/wp-content\/uploads\/2022\/09\/Nana-IMF-boss.jpg\" "\\"Nana")
<\/div>\nThe International Monetary Fund (IMF) has reached a staff-level agreement with Ghana on economic policies and reforms to be supported by a new three-year arrangement under the Extended Credit Facility (ECF) of about US$3 billion. <\/p>\n
According to the IMF, the authorities\u2019 strong reform programme is aimed at restoring macroeconomic stability and debt sustainability while protecting the vulnerable, preserving financial stability, and laying the foundation for strong and inclusive recovery.<\/p>\n
The IMF said to support the objective of restoring public debt sustainability, the Ghanaian authorities have launched a comprehensive debt operation.<\/p>\n
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In addition to a front-loaded fiscal consolidation and measures to reduce inflation and rebuild external buffers, the programme envisages wide-ranging reforms to address structural weaknesses and enhance resilience to shocks.<\/p>\n
An IMF team led by Mr St\u00e9phane Roudet, Mission Chief for Ghana, visited Accra between December 1 \u2013 13, 2022, to discuss with the Ghanaian authorities IMF\u2019s support for their policy and reform plans.<\/p>\n
\u201cI am pleased to announce that the IMF team reached staff-level agreement with the Ghanaian authorities on a three-year programme supported by an arrangement under the\u00a0Extended Credit Facility (ECF)\u00a0in the amount of SDR 2.242 billion or about US$3 billion. <\/p>\n
\u201cThe economic programme aims to restore macroeconomic stability and debt sustainability while laying the foundation for stronger and more inclusive growth. The staff-level agreement is subject to IMF Management and Executive Board approval and receipt of the necessary financing assurances by Ghana\u2019s partners and creditors,\u201d he said.<\/p>\n
He continued: \u201cThe Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government\u2019s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackles the deep challenges facing the country.<\/p>\n
\u201cKey reforms aim to ensure the sustainability of public finances while protecting the vulnerable. The fiscal strategy relies on frontloaded measures to increase domestic resource mobilisation and streamline expenditure.\u201d<\/p>\n
ALSO READ:<\/strong><\/p>\n Debt Exchange Programme is key requirement for IMF deal \u2013 Ofori-Atta<\/strong><\/p>\n We\u2019re working to reach deal with IMF by end of the year -Akufo-Addo<\/strong><\/p>\n He added: \u201cIn addition, the authorities have committed to strengthening social safety nets, including reinforcing the existing targeted cash-transfer programme for vulnerable households and improving the coverage and efficiency of social spending.<\/p>\n \u201cStructural reforms will be introduced to underpin the fiscal strategy and ensure a durable consolidation. These include developing a medium-term plan to generate additional revenue and advancing reforms to bolster tax compliance. This will help create space for growth-enhancing measures and social spending. <\/p>\n \u201cEfforts will also be made to strengthen public expenditure commitment controls, improve fiscal transparency (including the reporting and monitoring of arrears), improve the management of public enterprises, and tackle structural challenges in the energy and cocoa sectors. The authorities are also committed to further bolstering governance and accountability.\u201d<\/p>\n Also to support the objective of restoring public debt sustainability, the authorities have announced a comprehensive debt restructuring programme.<\/p>\n Sufficient assurances and progress on this front will be needed before the proposed Fund-supported programme can be presented to the IMF Executive Board for approval.<\/p>\n \u201cReducing inflation, enhancing resilience to external shocks, and improving market confidence are also important programme priorities. Accordingly, the Bank of Ghana will continue to strengthen its monetary policy framework and promote exchange rate flexibility to rebuild external buffers. As part of the authorities\u2019 debt strategy, a domestic debt exchange has been launched. The authorities are committed to taking the necessary mitigation measures to ensure financial sector stability is preserved.<\/p>\n \u201cIMF staff held meetings with Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, and their teams, as well as representatives from various government agencies. The IMF team has also continued to engage with other stakeholders.\u201d <\/p>\n <\/p>\n