As economic assistance, the government could obtain a $3 billion loan from the International Monetary Fund.
According to Bloomberg, the funding will be distributed over three years in the form of balance of payment support.
A billion dollars are expected to be received immediately after the fund approves the government’s economic program.
“The sum is more than double what the country was considering a month ago as it seeks to shore up its finances and gain access to global markets.” The funding would be provided over three years, the people said, declining to be identified because “talks are still ongoing and no public announcements have been made,” according to the report.
The government began discussions with the International Monetary Fund in July 2022, following a directive by President Akufo-Addo to the Finance Minister to engage with the institution.
The engagement with the IMF, will seek to provide balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the COVID-19 pandemic and, recently, the Russia Ukraine crises.
The move comes as Ghana’s economy is facing a number of challenges including a worsening public debt situation which has risen to about GH¢393.4 billion or 78.3 per cent of GDP as at June 2022 , rising inflation which has risen to about 29.8 percent in June this year, high fuel prices, cedi depreciation among others.
The struggling economy has impacted negatively on the local currency which has almost hit GH¢9 to a dollar.
Also, International Ratings agency, S&P on Friday, August 5, 2022, revised Ghana’s rating from B-/B to CCC+/C.
It also reviewed the country’s economic outlook to negative, reflecting “Ghana’s limited commercial financing options, and constrained external and fiscal buffers.”
