Demonstration against the depreciation of the Ghanaian currency, the cedi, in Accra on November 5, 2022 (AFP/Archives/Nipah Dennis)
Ghana has reached an agreement with the International Monetary Fund on a three billion dollar bailout loan, the IMF announced on Tuesday, at a time when the country is facing a serious economic crisis.
Already overwhelmed by a high debt, Ghana is facing historic inflation of more than 40% and the collapse of the rate of its currency – the cedi -, economic difficulties aggravated since the Russian invasion of Ukraine.
“I am pleased to report that the IMF team has reached an agreement with the Ghanaian authorities on a three-year program (…) under the Extended Credit Facility (ECF) in the amount (. ..) of around US$3 billion,” IMF Ghana Mission Chief Stephane Roudet said.
The loan “aims to restore macroeconomic stability and debt sustainability while laying the foundations for stronger and more inclusive growth,” Roudet added in a statement.
This agreement must now be approved by the IMF’s Executive Board in Washington, he continued.
Ghanaian President Nana Akufo-Addo is under fire for his handling of the economic crisis and in particular for having requested aid from the IMF, he who had once promised a “Ghana without aid”.
Many Ghanaians fear that with this agreement the government will be forced to impose austerity measures that would further burden the population, already confronted with the explosion of prices.
Ghana is a leading producer of cocoa and gold and is endowed with oil and gas reserves, but its debt service payments have soared. And like the rest of sub-Saharan Africa, it is being hit hard by the consequences of the global pandemic and the war in Ukraine.
© 2022 AFP
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