Introduction
Ghana’s public debt reached a critical threshold of 88.1% of GDP by the end of 2022, severely constraining the country’s ability to meet its debt obligations and prompting downgrades by major credit rating agencies. In response, the Government of Ghana formally approached the International Monetary Fund (IMF) in July 2022 for support. This culminated in the IMF Executive Board’s approval, on 17 May 2023, of a 36-month programme under the Extended Credit Facility (ECF), amounting to SDR2.242 billion (approximately US$3 billion). Ghana has successfully implemented the programme, completing the first, second, and third reviews, resulting in total disbursements of approximately US$1.9 billion to support the country’s economic recovery and reform efforts.
First Review
Following the release of the first tranche of US$603 million on 19 May 2023, the IMF conducted the first review of the programme between 25 September and 6 October 2023. The review assessed four categories: Quantitative Performance Criteria (QPCs), Monetary Policy Consultation Clauses (MPCC) and Structural Reform Benchmarks (SBs). Ghana’s commendable performance in the first review led to the receipt of the second tranche of US$600 million, which resulted in a cumulative disbursement of US$1.2 billion under the programme.
2nd Review
On 28 June 2024, the IMF Executive Board completed the second review of Ghana’s US$3 billion, 36-month Extended Credit Facility (ECF) arrangement. Ghana successfully met all quantitative performance criteria and all but one of the indicative targets for this review. The completion of the review triggered an immediate disbursement of approximately US$0.36 billion, bringing total disbursements under the programme to about US$1.6 billion at the time.
3rd Review
On 2 December 2024, the IMF Executive Board completed the third review of Ghana’s US$3 billion, 36-month Extended Credit Facility (ECF) arrangement. All end-June 2024 performance criteria (PCs) and indicative targets (ITs) were met. However, two structural reform benchmarks were missed. The review’s completion enabled an immediate disbursement of approximately US$0.36 billion, bringing Ghana’s total disbursements under the programme to about US$1.9 billion as of the end of 2024.
Performance Results
| Assessment Criteria (3rd Review) | Targets Met |
| 6 Quantitative Performance Criteria | 6/6 targets met |
| 1 Monetary Policy Consultation Clause | 1/1 target met |
| 4 Indicative Targets | 4/4 targets met |
| 7 of 9 Structural Reform Benchmarks | 5/7 targets met |
As of December 2024, progress has been made on the two previously missed structural benchmarks. These are:
- The new methodology for the Cedi reference rate was implemented in September 2024, slightly later than the original target of end-August 2024.
- The Ghana Revenue Authority (GRA) has completed the data cleaning exercise for the taxpayer registry, later than the original target of end-June 2024.
Following the third review, the IMF has proposed several modifications, including:
- Adjustments to PCs and ITs from end-December 2024 through end-June 2025 to reflect macroeconomic developments, including an upward shift in the MPCC bands through June 2025.
- The introduction of a new asymmetric adjustor on the IT for non-oil revenues (ceiling) to account for the potential impact of a one-off Energy Sector Levy (ESL) dividend at end-December 2024.
- The establishment of PCs and ITs through end-December 2025, along with nine (9) new structural benchmarks (SBs) for end-January 2025 through end-December 2025, will be implemented.
Conclusion
Ghana remains on track with the implementation of the IMF-supported programme, making steady progress toward economic stabilization. The recent completion of the Eurobond restructuring marks another key milestone in the Government’s strategy to restore debt sustainability.
Pending the release of the report on the fourth assessment of Ghana’s economic progress and the implications for future financial support, the Ministry of Finance remains committed to coordinating the implementation of the programme, which would unlock an estimated US$0.72 bn and further bolster investor confidence.
Source: KPMG
