Ghana ranks as the second-highest debtor globally under the International Monetary Fund’s (IMF) Concessional Lending and Debt Relief Trust, with an outstanding exposure of 2.242 billion Special Drawing Rights (SDR), equivalent to 17% of the total borrowings from the IMF. This is outlined in the IMF’s latest financial statements and quarterly reports ending October 31, 2024.
The concessional lending facility, classified under the Poverty Reduction and Growth Trust (PRGT), provides financial assistance to low-income countries at low interest rates. These loans are typically disbursed over one to three years to support economic recovery and growth.
Ethiopia leads the global list with IMF debt amounting to 2.256 billion SDR, while Zambia follows Ghana in third place with an exposure of 1.272 billion SDR. Kenya and Ivory Coast take fourth and fifth positions, respectively. The remaining 44% of SDR loans are distributed among other borrowing nations.
Africa dominates the regional distribution of outstanding PRGT loans, accounting for a substantial 78% of the total debt, reflecting the continent’s reliance on concessional financing for economic challenges. Europe represents the smallest share, with only 1% of the outstanding SDR loans.
Ghana, alongside Zambia, has defaulted on its debt obligations, driving both nations to seek financial assistance from the IMF. Ghana approached the Fund in 2023 amid severe financial strain, securing a $3 billion bailout under the Extended Credit Facility (ECF) to stabilize its economy.
To date, Ghana has received $1.92 billion of the approved bailout, with the remaining tranches expected to be disbursed in the coming months. The IMF program aims to address Ghana’s fiscal imbalances, support economic recovery, and strengthen debt sustainability in the face of mounting challenges.
Godfred Sey/ Ahotoronline.com
