Ghana Set to Get $600m Loan Approval From IMF on Friday

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Ghana Set to Get $600m Loan Approval From IMF on Friday

Ghana Set to Get $600m Loan Approval From IMF on Friday

The Executive Board of the International Monetary Fund (IMF) will meet on Friday to approve a rescue loan of $600 million to west African country of Ghana, according to sources at the IMF.

Ghana struck the deal with its bilateral lenders, including China and France, late last week, a key step to unlocking the second tranche of IMF funding under a $3 billion bailout.

IMF Managing Director Kristalina Georgieva welcomed the debt deal agreement on Friday, saying it clears the path for the executive board’s first review of Ghana’s programme.

A sign off by the board is usually seen as a formality once a date has been agreed.

The West African country defaulted on most external debt in December 2022 after servicing costs soared. NBS And The Task of Delivering Reliable National Data

It also needs to reach a relief deal with private holders of about $13 billion in international bonds.

It is aiming to restructure $20 billion of external debt, which totalled about $30 billion at the end of 2022, under the Common Framework, a debt restructuring process set up by the G20 countries during the COVID-19 pandemic. It has targeted cutting $10.5 billion from payments due between 2023-2026.

The IMF second tranche payout, once signed off, should also trigger $550 million in additional World Bank funding, Ghana’s finance ministry said.