The International Monetary Fund has approved a $3 billion loan to Ghana to help the country resolve its raging economic crisis.
In a statement, the IMF said the decision would enable an immediate disbursement of about 600 million dollars to Ghana.
It added that the facility would support “a comprehensive reform programme” by the Ghanaian government to tackle the deep economic crisis brought on by a combination of large external shocks and preexisting fiscal and debt weaknesses.
The statement said the Ghanaian government’s reform programme would focus on restoring macroeconomic stability and debt sustainability while implementing wide-ranging reforms to build resilience and lay the foundation for more robust and inclusive growth.
Facing soaring inflation and currency depreciation, the Ghanaian government began negotiations with the IMF in July 2022 for a bailout package.
Sources familiar with Ghana’s new program cautioned that authorities there faced long negotiations with creditors, pointing to Zambia, where a similar process has been mired in delays.
Zambia, the first African country to default in the COVID-19 era, secured an IMF loan in September 2022 and still has not agreed debt restructuring terms with creditors.
Analysts expect Ghana’s process to be faster and smoother since China holds a smaller proportion of Ghana’s debt. China is Zambia’s largest bilateral creditor and has been accused of delaying that country’s debt restructuring, which it denies.