Reactions to $3 billion Ghana IMF loan
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The International Monetary Fund (IMF) yesterday approved a $3 billion loan for Ghana. The West African country faces a massive economic crisis brought on by the Covid-19 crunch and the Ukraine crisis.
The programme, endorsed by the IMF board, is spread over 36 months under the Extended Fund Facility with the first immediate disbursement to be paid of about $600 million.
It aims at “restoring macroeconomic stability and debt sustainability, as well as implementing wide-ranging reforms to build resilience and lay the foundation for stronger and more inclusive growth,” commented Fund Managing Director Kristalina Georgieva, quoted in an IMF statement.
She said that “fiscal consolidation is a central element of the programme” as is “preserving financial sector stability”.
Furthermore, “monetary and exchange rate policies under the programme will focus on inflation control and rebuilding foreign exchange reserves”.
Finally, “an ambitious programme of structural reforms is being put in place to revitalise private sector-led growth by improving the business environment, governance, and productivity,” she added.
Ghana decided to call on the IMF and in December reached a pre-agreement with the institution to obtain 3 billion dollars in loans spread over three years and conditional on the implementation of economic reforms.
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