Ghana gives assurances for IMF board to consider approving loan deal: IMF

AFP , Friday 12 May 2023

Ghana has given sufficient assurances to enable the International Monetary Fund (IMF) board to consider approving a $3 billion loan agreement, the lender said in a statement on Friday.

Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), attends the panel discussion on Trade integration in Africa at Villa Rosa Kempinski Hotel in Nairobi on May 5, 2023. AFP

Facing its worst economic crisis in decades, Ghana in December agreed to a three-year credit program with the IMF to strengthen the country's finances and restore confidence.

Since then, talks had focussed on assurances from a committee of Ghana's creditors over whether a proposed debt exchange program would be enough to secure the IMF agreement.

"I welcome the statement from the Official Creditor Committee for Ghana on the importance of an IMF-supported economic program, together with its commitment to negotiate debt restructuring terms accordingly," IMF chief Kristalina Georgieva said.

"This statement provides the necessary financing assurances for the IMF Executive Board to consider the proposed Fund-supported program and unlock much-needed financing."

A major cocoa and gold producer, Ghana also has oil and gas reserves. But its debt load has grown and like other sub-Saharan African nations, it has struggled with fallout from the Covid pandemic and the Russia-Ukraine war.

The economic crisis forced President Nana Akufo-Addo's government to reverse its position earlier this year and seek IMF help as economists warned of a default on debt payments.