![[Audio] US$940m IMF deal ‘positive but unspectacular’ – Bernard Avle](https://citifmonline.com/wp-content/uploads/2015/02/imf-deputy-managing-director-ms-nemat-shafik-and-seth-terkper.jpg)
The International Monetary Fund (IMF) has approved an Extended Credit Facility (ECF) for Ghana worth about $918 million.
Ghana signed the ECF with the IMF team in February and the leader of the team Joel Toujas-Bernate clarified that the facility would be used to support balance of payment and not direct budgetary injections.
[contextly_sidebar id=”efvpXhwo11NufvwoeCDGEx7wq0B3vS2d”]In a statement released by the IMF on Friday after the board finally approved the funding said, the ECF would help Ghana boost growth, jobs and stablility.
The ECF according to the statement would also support Ghana’s medium-term economic reform program.
Ghana’s debt stock which is now about 67% of GDP has raised serious concerns among economists and financial analysts who feel it has reached unsustainable levels.
The IMF 3-year program aims to “restore debt sustainability and macroeconomic stability to foster a return to high growth and job creation, while protecting social spending.”
The Executive Board’s decision will enable an immediate disbursement of the money to Ghana, the statement confirmed.
Why IMF?
Government turned to the IMF in 2014 for a possible bailout as a result of high inflation rates, depreciation of the cedi, huge wage bill, among others.
In early February 2015 Government said it had concluded most of the outstanding issues concerning the negotiations with the IMF.
This was according to the Head of the Ghana’s negotiation team, Dr. Kwesi Botchway who said the programme would take off not later than April 2015 when the IMF Executive Board meets.
–
By: Nana Boakye-Yiadom/citifmonline.com/Ghana