IMF distributes funds to Ghana for economic stability

The International Monetary Fund (IMF) completed its second review of Ghana’s economic status Thursday, distributing approximately $114.6 million to the West African nation.

The country currently has a three-year arrangement with the IMF under the Extended Credit Facility (ECF), totaling approximately $918 million, to enable Ghana to achieve national economic stability and facilitate growth.

Thus far, the IMF has distributed approximately $343.7 million under this arrangement.

Overall, the Executive Board recognizes the corrective actions taken by Ghanaian authorities and has granted a waiver relating to the nonobservance of criteria of non-accumulating arrears.

Acting Chair and Deputy Managing Director for the IMF Min Zhu states that the financial sector of Ghana should be monitored for stability, specifically in regards to weaknesses in assets. 

“The authorities should resolutely continue their fiscal consolidation efforts,” Zhu said. “With government debt continuing to increase and financing remaining a challenge, the 2016 budget rightly aims at a stronger consolidation than originally envisaged. In this regard, it is essential that the government sticks firmly to its policy of strict expenditure controls, by maintaining the wage bill within the budget limits, while controlling discretionary spending and protecting priority spending."