The Bank of Ghana and the Ministry of Finance will sign a Memorandum of Understanding to ensure the repayment of the $3 billion loan from the International Monetary Fund.
The loan has a 0% interest rate and a 10-year maturity period, with a 5.5-year grace period. The loan is part of a 3-year Extended Credit Facility (ECF) arrangement between Ghana and the IMF.
The arrangement aims to reduce the fiscal deficit by 5.1 percentage points of Gross Domestic Product (GDP) over 3 years (2023-2025) by achieving the following Primary Balance (on a commitment basis) and fiscal adjustment (fiscal effort).
The Finance Minister, Ken Ofori-Atta, said that the debt management (both domestic and external) will help to restore the public debt to sustainable levels by 2028 by respecting the two binding constraints.
They are the Public Debt (in present value terms) to GDP ratio of 55% or less; and External Debt Service to Revenue ratio of 18% or less. The progress of the arrangement will be evaluated and reviewed every six months.