Ghana will receive a $3 billion loan from the International Monetary Fund (IMF) to restore macroeconomic stability and foster inclusive growth in the country.
The IMF Mission Chief for Ghana, Stéphane Roudet, said the loan will also support reforms in the energy and cocoa sectors, as well as increase private sector investments and international reserves.
“The programme aims to make the economy more resilient and able to withstand shocks in the future,” he said at a joint press conference with Ghana’s Finance Minister Ken Ofori-Atta in Washington on Thursday, May 18.
Mr Ofori-Atta said the government is not in a hurry to borrow from the international capital market after securing the IMF loan.
He said the government is focusing on improving revenue collection and managing expenditure to mobilize domestic resources.
“We are also working to improve our ratings and attract more foreign direct investments. But we are not rushing to the capital market at this point,” he said.
The IMF Board approved Ghana’s loan on Wednesday, May 17, after Ghana obtained financing assurances from the Paris Club on Friday, May 12.
The Paris Club issued a statement on Friday, May 12, saying that Ghana is expected to seek debt treatments from all private creditors and other official bilateral creditors on terms at least as favorable as those offered by the Paris Club.
It also urged private creditors and other official bilateral creditors to negotiate with Ghana without delay to ensure the effectiveness of the debt treatment under the Common Framework for Debt Treatments beyond the DSSI.
The Paris Club also formed a creditor committee for Ghana, co-chaired by China and France, to oversee the implementation of the debt treatment.
The creditor committee welcomed Ghana’s planned IMF programme and encouraged Multilateral Development Banks to provide maximum support for Ghana’s long-term financial needs.