The International Monetary Fund and Ghana have finally reached an agreement

Ghana has been attempting to get a $3 billion rescue loan from the International Monetary Fund for several months, and yesterday all parties finally came to an understanding.

Since the first of this month, an IMF team in Accra has been in talks with the Ghanaian administration under the direction of Mr. Stéphane Roudet, Mission Chief for Ghana.

“I am pleased to announce that the IMF team reached a staff-level agreement with the Ghanaian authorities on a three-year program supported by an arrangement under the Extended Credit Facility (ECF) in the amount of SDR 2.242 billion, or roughly US$3 billion,” Mr. Stéphane Roudet said in a concluding statement after the 13-day dialogue.

The economic plan intends to set the groundwork for stronger and more inclusive growth while reestablishing macroeconomic stability and debt sustainability. The staff-level agreement is contingent to IMF Management and Executive Board approval and Ghana’s partners and creditors receiving the required funding assurances.

During the discussions, Ghanaian officials explained to the IMF team why they were asking for the loan. “Reducing inflation, restoring public debt sustainability, boosting resilience to external shocks, improving the market, protecting the vulnerable, maintaining financial stability, and building the framework for strong and inclusive recovery” are among the reasons given by Ghanaian authorities.

In order to rebuild external buffers, the Ghanaian government has pledged to tighten the framework for its monetary policy and encourage exchange rate flexibility.

The Ghanaian Cedi, which was previously the worst-performing currency in the world, rose to become the best-performing currency last week as a sign of the nation’s economic prowess. This was made possible by the government’s debt restructuring plan.

The IMF delegation has met with Ghanaian officials for the previous 13 days, including Vice President Bawumia, Finance Minister Ofori-Atta, and Governor Addison of the Bank of Ghana, in addition to members from several government departments.

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