The International Monetary Fund’s executive board on Wednesday approved a $3 billion, three-year loan program for Ghana.
The approval comes after months of delays due to a difficult debt restructuring program.
With the approval, the West African nation would now access about $600 million immediately towards tackling its worst economic crisis in decades.
But the IMF said in a statement that Ghana’s ability to securing timely debt restructuring agreements with external creditors would be essential for a successful program.
The IMF said this new loan would help mobilize additional external financing from development partners and provide a framework for completing Ghana’s debt restructuring.
“Congratulations to Ghana for a strong program of reforms to revitalize growth and reduce the country’s debt burden,” IMF Managing Director Kristalina Georgieva said in a video posted to Twitter.
Congratulations to President @NAkufoAddo & his team on the $3 billion IMF-supported program approved by our Executive Board.
We stand with Ghana as it implements reforms to address the current economic and financial crisis and help build a better future for all Ghanaians.
— Kristalina Georgieva (@KGeorgieva) May 17, 2023
Last week the Paris Club of creditors said Ghana’s official sector creditors formed a committee co-chaired by China and France and agreed to debt restructuring talks.
“The next step is for the Official Creditor Committee… to agree with the authorities the specific modalities of how official creditors intend to deliver debt relief consistent with Fund-program parameters,” the IMF said on its website.
Ghanaian officials had blamed the country’s economic crisis on the fallout from the COVID-19 and Russia’s invasion of Ukraine.
But some analysts have said the country’s economic woes started long before these global crises.