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| The International Monetary Fund (IMF) |
Ghana ranks as the world’s second country indebted
under the International Monetary Fund (IMF) Concessional Lending and Debt
Relief Trust.
The country holds an outstanding exposure of 2.242
billion Special Drawing Rights (SDR) representing 17% of the total borrowings
from the IMF.
This is captured in the IMF’s latest financial
statements and quarterly reports ending October 31, 2024.
Specifically, the facility classified under
concessional lending is offered at low interest rates, with the Poverty
Reduction and Growth Trust (PRGT) providing financial support to low-income
countries on favourable terms within one to three years.
Ethiopia emerged first with an IMF debt of 2.256
billion SDR, while Zambia placed third with an SDR indebtedness of 1.272
billion.
Following in fourth and fifth positions were Kenya and
Ivory Coast, respectively. The remaining SDR (44 %) were owed to the IMF by
other countries.
In terms of regional breakdown of the outstanding
poverty loans, Africa held a chunk amounting to 78% percent.
The least regional receiver was Europe. It accounted
for only one percent.
Ghana along with Zambia, has defaulted on its debt
obligations compelling both countries to seek financial assistance from the
Fund.
In particular, Ghana in 2023 turned to the IMF for
economic assistance amid severe financial challenges.
A $3 billion bailout was approved under the IMF
Extended Credit Facility (ECF) to help stabilize the economy.
Ghana has so far received $1.92 billion from the
program with the outstanding tranches expected in the coming months.
Source: HR Forum News
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