Ghana’s IMF bailout program nears approval, says IMF boss
Ghana’s bailout program, which has been in the works for some time now, may soon receive the approval of the Executive Board of the International Monetary Fund (IMF).
According to the Managing Director of the IMF, Kristalina Georgieva, creditors have been meeting to agree on financing assurances for Ghana, and this is the last action required before the board considers the program.
Speaking at the sidelines of the ongoing IMF/World Bank Spring Meetings in Washington, Georgieva expressed optimism that progress on Ghana’s bailout request is moving swiftly.
Ghana, like many other countries around the world, has been hit hard by the Covid-19 pandemic. The West African nation is facing its worst economic crisis in decades, and the IMF has been pushing for bilateral creditors to accelerate creditor talks to help Ghana restore its economy. The bailout program, if approved, will provide much-needed support to Ghana’s struggling economy.
China, which is Ghana’s biggest bilateral lender, reportedly agreed to drop its demand for multilateral development banks, including the IMF and World Bank, to share losses alongside other creditors in sovereign debt restructurings. This agreement has made it possible for a deal to be expected in early May. The move by China is significant as it shows the country’s willingness to work with other creditors to provide support to Ghana during these difficult times.
The approval of the bailout program by the IMF’s Executive Board would be a significant boost to Ghana’s economy. The program is expected to provide financial assistance and policy advice to Ghana, which will help the country address its macroeconomic imbalances and restore fiscal sustainability. The program will also support Ghana’s efforts to promote inclusive growth and reduce poverty.
The IMF has been working closely with Ghana in recent years to support the country’s economic development. In 2015, the IMF approved a $918 million loan program for Ghana to help the country address its fiscal and economic challenges. The program was successful, and Ghana was able to restore macroeconomic stability and improve its economic performance.
The current bailout program is expected to build on the success of the previous program and provide additional support to Ghana’s economy. The program will focus on fiscal consolidation, debt sustainability, and structural reforms to promote growth and reduce poverty. The IMF will work closely with the Ghanaian authorities to implement these policies and monitor progress.
The approval of Ghana’s bailout program by the IMF’s Executive Board will be a significant boost to Ghana’s struggling economy. The program will provide much-needed financial assistance and policy advice to Ghana, which will help the country address its macroeconomic imbalances and restore fiscal sustainability.
The program will also support Ghana’s efforts to promote inclusive growth and reduce poverty. With the support of the IMF and other creditors, Ghana can overcome its economic challenges and emerge stronger in the post-pandemic world.
