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Ghana has emerged as the second most indebted country to the International Monetary Fund (IMF) in Africa regarding concessional lending and debt relief trust.
As of October 31, 2024, the country’s exposure to the Fund stood at 2.242 billion Special Drawing Rights (SDR), equivalent to $2.914 billion. Until recently, Ghana held the position of the most indebted African country to the IMF.
Ghana’s debt to the IMF represents 17% of Africa’s total borrowings from the Bretton Woods institution. The Democratic Republic of Congo now ranks first with an indebtedness of 2.256 billion SDR. Zambia follows Ghana in third place with an SDR of 1.272 billion in loans owed to the IMF.
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Both Ghana and Zambia have defaulted on their loans, necessitating financial assistance from the IMF.
According to the IMF’s Quarterly Finances, Ghana’s outstanding concessional loans have increased compared to figures recorded in July 2024.
The West African nation turned to the IMF in January 2023 for economic assistance after facing severe economic challenges.
In May 2023, the IMF approved a $3 billion bailout package to help stabilise and revive Ghana’s economy. So far, the country has received $1.92 billion under the Economic Credit Facility Programme.
Ghana’s loan exposure to the IMF falls under concessional lending, characterised by low-interest financing. These loans are provided through the Poverty Reduction and Growth Trust (PRG Trust), which offers concessional terms to qualifying low-income member countries.
