Second Review of Ghana’s Three-Year Financial and Economic Program under the IMF Extended Credit Facility, 2015-2017
The performance criteria and indicative targets are set for end-April, end-August, and end-December 2015. To this end CEPA has successfully conducted its own assessment of the Program for end-April and seeks to do same for end-August through this medium.
On the 31st of August 2015, the Executive Board of the International Monetary Fund (IMF) completed the first review of Ghana‟s economic performance under the program supported by an Extended Credit Facility (ECF) arrangement and disbursed about US$ 116.6 million bringing total disbursement under the arrangement to US$ 233.1 million.
The Executive Board granted Ghana waivers for the non-observance of the performance criteria regarding gross credit to government, and non-accumulation of external arrears. They also approved the authorities‟ request for modifications of the performance criteria. They welcomed the government‟s medium-term debt management strategy as key in reducing near-term financing risks. However they advised the government to complement its strategy by striving to deepen the domestic market, as well as by seeking to borrow externally on concessional terms as much as possible. In other to control inflation, the Board indicated that;
“The monetary policy stance will have to remain tight to help bring inflation down against the background of exchange rate volatility.
The Bank of Ghana (BoG) should stand ready to tighten monetary policy further if inflationary pressures do not recede as expected”.