Ghana’s IMF Loan Exposure Reaches $2.9Bn; Country Ranks as Africa’s 2nd Most Indebted Nation to IMF
Ghana has emerged as the second most indebted African nation to the International Monetary Fund (IMF) under the Concessional Lending and Debt Relief Trust as of October 31, 2024.
The country’s exposure to the IMF stood at 2.242 billion Special Drawing Rights (SDR), equivalent to $2.914 billion, representing 17% of Africa’s total borrowing from the Fund.
This position follows the Democratic Republic of Congo, which is Africa’s leading debtor to the IMF with a loan exposure of 2.256 billion SDR.
Zambia ranks third, with an indebtedness of 1.272 billion SDR.
Ghana’s IMF Engagement
Ghana sought financial assistance from the IMF in January 2023 following severe economic challenges.
In May 2023, the Fund approved a $3 billion bailout under its Extended Credit Facility (ECF) program to help stabilize the country’s economy. So far, Ghana has received $1.92 billion under the program.
Default on Loans
Both Ghana and Zambia have defaulted on their respective debts, necessitating IMF interventions.
Ghana’s concessional loans, classified as low-interest financing, increased compared to the levels recorded in July 2024, according to the IMF’s Quarterly Finances.
Concessional Lending Program
The Poverty Reduction and Growth (PRG) Trust facilitates concessional loans to low-income countries, such as Ghana, at low-interest rates.
Ghana’s rising exposure to the IMF underscores its ongoing struggle with debt management and reliance on international financial institutions to revive its ailing economy.
