Ghana has secured the unenviable position of being the second most indebted country to the International Monetary Fund (IMF) in Africa.
As of October 31, 2024, the country’s exposure to the Fund stood at a staggering 2.242 billion Special Drawing Rights (SDR), equivalent to $2.914 billion.
This revelation comes on the heels of Ghana’s economic struggles, which prompted the government to seek assistance from the IMF in January 2023. In response, the IMF approved a $3 billion bailout package in May 2023 to help revive the Ghanaian economy. Thus far, Ghana has received $1.92 billion from the IMF under the Economic Credit Facility Programme.
The country’s loan exposure to the Bretton Woods institution is classified as concessional lending, characterized by low-interest financing.
This type of lending is typically reserved for low-income member countries, which Ghana qualifies for under the PRG Trust.
Ghana’s debt burden represents a significant 17% of the total African borrowings from the IMF. The Democratic Republic of Congo has surpassed Ghana as the most indebted country, with an indebtedness of $2.256 billion SDR.
The IMF’s Quarterly Finances report indicates that Ghana’s outstanding concessional loans to the Fund have increased since July 2024. This trend raises concerns about the country’s ability to manage its debt and recover from its economic challenges.
Source: OccupyGh.com
Tap To Join Our WhatsApp Community
