Ghana pays $75m of $1.7bn debt owed IMF
Ghana’s outstanding loans to the International Monetary Fund (IMF) remained steady at SDR 1.278 billion, equivalent to $1.708 billion, as of the end of January 2023. The country still ranks as the number one debtor in Africa to the Bretton Wood institution. This ranking has remained unchanged from October 2022 when Ghana’s loans outstanding were estimated at SDR 1.28 billion, equivalent to about $1.68 billion, excluding COVID-19 support. Ghana’s loans to the IMF are classified as concessional lending, meaning the loans come with low-interest financing.
Despite Ghana’s stable debt to the IMF, the country is expected to secure an IMF support program by the end of March 2023 to help boost its balance of payment and stabilize the economy. This expectation is likely due to the country’s ongoing efforts to implement reforms to address its macroeconomic vulnerabilities. The IMF support program, if approved by the Board of the Fund in the first quarter of 2023, will increase Ghana’s debt to the IMF.
Ghana’s debt repayment to the IMF has been modest, with the country having repaid SDR 53 million, equivalent to $75.7 million, to the IMF so far. The Bretton Wood institution has not disbursed any funds to Ghana as of the time of this report. However, the country received more than $1.2 billion in COVID-19 support from the IMF to fight the pandemic and aid economic recovery. This support is not included in Ghana’s outstanding loans to the IMF.
On the African continent, the Democratic Republic of Congo and Kenya rank second and third, respectively, in terms of outstanding loans to the IMF. The Democratic Republic of Congo has an outstanding loan of SDR 1.142 billion, while Kenya’s outstanding loan is SDR 1.015 billion. Africa, as a whole, owes the IMF SDR 13.045 billion as of the end of January 2023.
