Despite achieving a Staff-Level Agreement, Ghana would be unable to access the $3 billion under its new three-year arrangement under the Extended Credit Facility (ECF) with the International Monetary Fund (IMF).
Stéphane Roudet, the IMF’s Mission for Ghana, noted that the funds may only be given to the Ghanaian government if the Staff-Level Agreement is presented to the Fund’s Management and Executive Board.
Following that, before monies are distributed, the Executive Board must ratify the Staff-Level Agreement.
On Tuesday, December 13, Mr. Roudet stated that the government must first demonstrate that “the program is fully financed” and that the “fiscal consolidation path, comprehensive debt restructuring that the authorities have launched will be sufficient to re-establish debt sustainability” before the Staff-Level Agreement can be presented.
Ghana has established a Domestic Debt Exchange to assist with debt reduction. Some investment and bond interests, notably until 2023, have been eliminated as part of the debt exchange scheme.
On Monday, December 12, Mr. Stéphane Roudet revealed that Ghana and the IMF had agreed a Staff-Level Agreement on economic policies and reforms.
Among other things, the economic recovery program strives to restore macroeconomic stability and debt sustainability while safeguarding the weak, ensuring financial stability, and building the groundwork for a strong and inclusive recovery.
This follows a six-month collaboration between the Fund and the government.
Ghana formally sought the Fund in July of this year after discovering its economy is in shambles as a result of excessive borrowing, Covid-19, and the Russia-Ukraine war.
Vice President Bawumia, Finance Minister Ofori-Atta, and Bank of Ghana Governor Addison, as well as officials from several government agencies, met with IMF employees.
The IMF delegation led by Stéphane Roudet arrived in Accra on December 1 and concluded talks with the administration on December 13.