The International Monetary Fund (IMF) announced on Saturday that it has approved a new installment of aid totaling $360 million for Ghana, as the country endeavors to overcome its economic challenges.
This fresh assistance is part of the IMF’s second review of its $3 billion aid package to Accra, which was initially endorsed in May of the previous year.
The aim of this financial support is to assist Ghana in stabilizing its public finances and effectively managing its substantial debt burden.
Stephane Roudet, the head of the IMF mission for Ghana, stated, “IMF staff and the Ghanaian authorities have reached a staff-level agreement on the second review of Ghana’s economic programme under the Extended Credit Facility.”
This program encompasses aid for political services and economic reforms.
With the approval of this latest package, the total amount of financial assistance provided by the IMF under the agreement since May 2023 reaches approximately $1.5 billion, as confirmed by the IMF.
Ghana faced its most severe economic crisis in decades in 2022, marked by inflation soaring past 50 percent. Consequently, the nation, a significant producer of gold, oil, and cocoa, had to secure a loan and restructure its debts.
The economic impact of the coronavirus pandemic and the Russia-Ukraine conflict has also taken a toll on Ghana, along with other African countries.
Despite these challenges, the IMF highlights that the aid extended to Ghana has already yielded positive results by enabling the country to initiate reforms aimed at restoring macroeconomic stability and debt sustainability, while laying the groundwork for robust and inclusive economic growth.
Notably, Ghana successfully implemented a restructuring of its domestic debt last year, indicating progress in its efforts to address its economic difficulties.
