IMF waiting for Board approval of Ghana programme review

Late December 2015, an International Monetary Fund (IMF) team was in Ghana to review the country’s Extended Credit Facility (ECF), contrary to some media reports that the review is scheduled for January 13, 2016, an official at the IMF has told ghanabusinessnews.com in an email correspondence.

“Review was done end of December 2015. We are just waiting for Board to approve on January 13. Our Deputy Managing Director (DMD) will be coming to participate in a conference and not review ECF,” the official wrote.

In February 2015, Ghana and the IMF ‘reached staff-level agreement’ for a three-year Extended Credit Facility (ECF).

In April 2015, the Fund approved a $918 million three-year ECF for Ghana, but classified the country as “high risk of debt distress” under a new debt sustainability analyses.

“Countries classified as high risk are allowed to borrow on non-concessional terms only under exceptional circumstances. This will be one of the first tests of the implementation of the new debt limits policy,” the Fund says.

According to the Executive Board of the Fund the three-year arrangement under the ECF it has approved for Ghana is aimed at restoring the country’s debt sustainability. Adding that it would also restore macroeconomic stability to foster a return to high growth and job creation, while protecting social spending.

After the first review of Ghana’s economic performance under the programme on August 31, 2015, the IMF went ahead to disburse the second tranche of the $918 million support amounting to $116.6 million, bringing to $233.1 million the total disbursement made so far to Ghana under the Facility.

By Emmanuel K. Dogbevi