The International Monetary Fund (IMF) has announced that Ghana is expected to receive the third tranche of $360 million by the end of this month, amidst ongoing efforts to stabilize the country’s economy and address the depreciation of the cedi against the strengthening U.S. dollar.

In a press briefing on June 6, Julie Kozack, the IMF’s Director of Communication, highlighted the Fund’s commitment to assisting Ghana in securing Board approval for the release of the funds.

« Our aim is to bring the review to the IMF’s Executive Board for approval before the end of June. This would give Ghana access to $360 million in financing, bringing the total to about $1.6 billion in disbursements since May of 2023, » she stated.

The IMF acknowledged the positive impacts of Ghana’s policy and reform efforts under the three-year program, noting signs of economic stabilization. « For example, growth in 2023 was higher than we had initially envisaged, » Kozack added.

The IMF commended Ghana’s progress in comprehensive debt restructuring. The domestic debt exchange was completed last year, and in January 2024, the government reached an agreement in principle with its official bilateral creditors. Additionally, Ghana is actively engaging with its external private creditors to seek their support.

Despite these efforts, Ghana faces significant challenges. The country has been grappling with a weakening cedi, which has lost more than 20% of its value against the U.S. dollar since the beginning of the year. This depreciation is compounded by the U.S.’s monetary policy tightening and Ghana’s increasing import bill.

The IMF emphasized the importance of steadfast policy and reform implementation to restore macroeconomic stability and debt sustainability in Ghana fully and durably. The government has committed to continuing the program’s implementation as envisaged to ensure sustainable growth and support poverty reduction.

As Ghana nears the final stages of negotiations and agreements at the bilateral level, the IMF remains optimistic about the country’s economic prospects. The anticipated approval and release of the third tranche of $360 million by the end of June will be a critical step in Ghana’s path toward economic recovery and stability.