IMF and Ghana Reach Agreement on $3 Billion Loan Program
The teams from the International Monetary Fund (IMF) and Ghanaian authorities have reached an agreement on the third review of the IMF's $3 billion loan program. The West African country is on track to complete a debt restructuring process under the G20 Common Framework, after defaulting on most of its $30 billion international debt in 2022.
According to the IMF, Ghana has made significant progress in restructuring its public debt, and the program's performance has been generally satisfactory. Economic growth in the first half of 2024 has been much higher than initially expected. Over 90% of Ghana's bondholders have approved a $13 billion eurobond restructuring following an agreement with bilateral creditors in June. The operation is expected to reduce the country's debt stock by $4.7 billion and provide a cash relief of $4.4 billion over the duration of the IMF program, until 2026.
The authorities have committed to continuing their efforts to reach an agreement with other external commercial creditors. Once approved by the IMF's Executive Board, Ghana will have access to $360 million in financing. A breath of fresh air for a country that seems to be overcoming the toughest challenges.
