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  • IMF Executive Board Completes Third ECF Review For Ghana, and Approves US$116

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    The IMF Executive Board completed the third review of Ghana's economic performance under an Extended Credit Facility arrangement, approving a disbursement of $116.2 million. The review made adjustments to ensure the program remains on track and its prospects for success are enhanced. Ghana's three-year $918 million ECF arrangement aims to restore debt sustainability and macroeconomic stability to foster high growth and job creation while protecting social spending. The IMF noted Ghana has made progress stabilizing its economy and reducing financial imbalances but fiscal risks remain high and further efforts are needed to strengthen reforms, broaden taxation, and improve public financial management.

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    IMF Executive Board Completes Third ECF Review for Ghana, and Approves US$116

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    IMF Executive Board Completes Third ECF Review for Ghana, and Approves US$116

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    The IMF Executive Board completed the third review of Ghana's economic performance under an Extended Credit Facility arrangement, approving a disbursement of $116.2 million. The review made adjustments to ensure the program remains on track and its prospects for success are enhanced. Ghana's three-year $918 million ECF arrangement aims to restore debt sustainability and macroeconomic stability to foster high growth and job creation while protecting social spending. The IMF noted Ghana has made progress stabilizing its economy and reducing financial imbalances but fiscal risks remain high and further efforts are needed to strengthen reforms, broaden taxation, and improve public financial management.

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    52 views2 pages

    IMF Executive Board Completes Third ECF Review For Ghana, and Approves US$116

    Uploaded by

    fbuame
    The IMF Executive Board completed the third review of Ghana's economic performance under an Extended Credit Facility arrangement, approving a disbursement of $116.2 million. The review made adjustments to ensure the program remains on track and its prospects for success are enhanced. Ghana's three-year $918 million ECF arrangement aims to restore debt sustainability and macroeconomic stability to foster high growth and job creation while protecting social spending. The IMF noted Ghana has made progress stabilizing its economy and reducing financial imbalances but fiscal risks remain high and further efforts are needed to strengthen reforms, broaden taxation, and improve public financial management.

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    © All Rights Reserved
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    IMFExecutiveBoardCompletesThirdECFReviewfor

    Ghana,andApprovesUS$116.2MillionDisbursement
    September29,2016
    OnSeptember28,2016theExecutiveBoardoftheInternationalMonetaryFund(IMF)completedthe
    thirdreviewofGhanaseconomicperformanceundertheprogramsupportedbyanExtendedCredit
    Facility(ECF)arrangement.[1]CompletionofthereviewenablesthedisbursementofSDR83.025
    million(aboutUS$116.2million),bringingtotaldisbursementsunderthearrangementtoSDR332.1
    million(aboutUS$464.6million).
    Duringthereview,adjustmentsweremadetotheprogramtoensurethatitremainsontrackandto
    enhanceitsprospectsofsuccess.Inthiscontext,theExecutiveBoardalsograntedwaivers,including
    forminordeviationsinafewprogramtargets.
    GhanasthreeyeararrangementforSDR664.20million(aboutUS$918millionor180percentof
    quotaatthetimeofapprovalofthearrangement)wasapprovedonApril3,2015(seePressRelease
    No.15/159).Itaimstorestoredebtsustainabilityandmacroeconomicstabilityinthecountrytofoster
    areturntohighgrowthandjobcreation,whileprotectingsocialspending.
    FollowingtheExecutiveBoardsdiscussiononGhana,Mr.TaoZhang,ActingChairandDeputy
    ManagingDirector,said:
    ImplementationoftheECFsupportedprogrambytheGhanaianauthoritiescontinuestobebroadly
    satisfactory,buttheeconomicoutlookremainschallenging.Therehasbeenprogressinstabilizing
    themacroeconomicsituationandreducingfinancialimbalances,butfiscalrisksremainelevated.
    Theauthoritiesarecontinuingtheirfiscalconsolidationprogramandaimtostrengthenpolicyand
    reformimplementation.Furthereffortsareneededtoaddressrevenueshortfalls,whileexpenditure
    controlmeasuresshouldbefullyenforcedtocontainthewagebillandothercurrentspending.The
    governmentisprojectedtorunaprimarysurplusthisyear,which,alongwiththestabilityofthecedi,
    shouldcontributetoamarkeddeclineinthedebttoGDPratio.Ongoingfiscalconsolidationand
    implementationofthemediumtermdebtmanagementstrategywillbekeytofurtherreducing
    domesticrefinancingrisksin2017.Theauthoritieswillneedtoremaincautiousinaccessingexternal
    marketfinancingwithdueconsiderationtocostsanddebtsustainability.
    Toensurethatthegainsfromfiscalconsolidationaresustainedoverthemediumterm,the
    governmentneedstocontinueitseffortstoeffectivelyimplementawiderangeofambitiousreforms.
    Theseincludemeasurestobroadenthetaxbaseandenhancetaxcompliance,strengthencontrolof
    thewagebill,andenhancepublicfinancialmanagement(PFM).Inthisregard,therecentlyadopted
    PFMlegislationisanimprovementoverpreviouslaws.StepstakentoaddressSOEsfinancial
    problemsarewelcome,butmoreworkisneededtoreduceriskstotheeconomy,thefinancialsector,

    andthegovernmentbudgetfromtheirunderperformance.
    TheBankofGhana(BoG)shouldmaintainatightmonetarypolicystancetobringinflationbackto
    target.RecentamendmentstotheBoGActhaveintroducedsomeimprovementstocentralbank
    governance,butcontinuedscopeforcentralbankfinancingofthegovernmentandgovernment
    influenceoncentralbankoperationsremainsignificantshortcomings.Theauthoritiescommittment
    tomaintainingzeroBoGfinancingofthegovernmentundertheprogramandtointroducingadditional
    amendmentstotheBoGActin2017arewelcome.
    FullandtimelyimplementationoftheBoGsroadmapforthebankingsystemisessentialtoaddress
    financialsectorrisks.Althoughtheadoptionofthetwonewbankingsectorlawsstrengthensthe
    authoritiestoolkit,thenewlegislationwarrantsfurtherimprovementstoenabletheauthoritiesto
    effectivelysafeguardfinancialstability.
    [1]TheECFisalendingarrangementthatprovidessustainedprogramengagementoverthe
    mediumtolongtermincaseofprotractedbalanceofpaymentsproblems.
    IMFCommunicationsDepartment
    MEDIARELATIONS

    PRESSOFFICER:
    Phone:+12026237100Email:MEDIA@IMF.org

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