IMF approves $360 mn loan disbursal for Ghana<\/h4>\n<\/p>\n
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<\/div>\n<\/div>\nWASHINGTON, Dec 3, 2024 (BSS\/AFP) – 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.<\/p>\n
“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.<\/p>\n
It added that “good progress” had been made on debt restructuring, while economic growth was recovering and inflation had declined.<\/p>\n
Ghana, a leading producer of oil, gold and cocoa, suffered a severe financial crisis in 2022, which forced the government to default on its external debt and to negotiate a three-year, $3 billion relief package with the IMF.<\/p>\n
The economy has emerged as a key issue ahead of Ghana’s presidential election on December 7 — a tight race between the ruling NPP party candidate and current Vice President Mahamudu Bawumia and former president and NDC party candidate John Mahama.<\/p>\n
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.<\/p>\n
“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.<\/p>\n
Li added it was also important to cushion “the vulnerable from the impact of fiscal adjustment.”<\/p>\n
The IMF said it expects Ghana’s GDP to grow by 4.0 percent this year and by 4.4 percent in 2025.<\/p>\n
Inflation is expected to ease from an annual rate of 18.0 percent at the end of this year to 8.0 percent by the end of 2025.<\/p>\n<\/p><\/div>\n