Accra, Ghana – (African Boulevard News) – The International Monetary Fund (IMF) has approved a $3 billion extended credit facility for Ghana to help ease economic hardship in the country. This agreement will support Ghana’s COVID-19 response and economic recovery plan for the next three years.
The IMF support comes as the country faces rising inflation and a widening budget deficit. The COVID-19 pandemic further worsened the economic situation, causing a decline in government revenue, rising debt, and a sharp decline in growth.
Ghana’s economic growth rate before the pandemic was around 6% annually, but it has since dropped to 0.9% in 2020, the lowest in 37 years. This situation has put pressure on the government to seek financial assistance from external sources.
President Nana Akufo-Addo welcomed the IMF’s decision, saying, “Ghana’s IMF board approval is far from a magic solution wand; however, it is a crucial first step in the necessary journey of strong reforms, inclusive growth, and relentless pursuit of our development agenda.”
The IMF package will help Ghana address macroeconomic imbalances and support the country’s medium-term structural reforms to spur inclusive growth. The extended credit facility program aims to support Ghana’s efforts to achieve macroeconomic stability, debt sustainability, and stronger governance.
The IMF board also recognized Ghana’s efforts to restore debt sustainability, enhance domestic revenue mobilization, and strengthen public spending.
According to the IMF report, “Ghana’s program aims to foster sustainable and inclusive growth by addressing long-standing economic imbalances, restoring debt sustainability, and enhancing governability,” stressing the importance of the government’s commitment to this program.
The IMF package will support Ghana in implementing economic policies and structural reforms geared toward reviving the economy and improving the standard of living of Ghanaians.
In conclusion, the IMF $3bn bail-out package offers hope to Ghana as the country seeks to overcome its economic challenges caused by the COVID-19 pandemic. The assistance will go a long way in reviving the economy and stimulating growth. However, the government must put in place effective economic policies, ensure prudent management of public resources, and implement structural reforms to make the program a success.
