IMF, Ghana reach deal on $3B loan review amid debt restructuring progress

By Enoch Fiifi Forson

ACCRA, Ghana (AA) - The International Monetary Fund (IMF) announced that staff and officials in Ghana reached an agreement on the third review of the country’s $3 billion loan program.

It comes as Ghana approaches the completion of a debt-restructuring process under the G20’s Common Framework initiative, following a default on much of $30 billion international debt in 2022.

The IMF acknowledged in a statement, Ghana's "remarkable progress" in restructuring its public debt and noted that the performance of the program has been "generally satisfactory."

More than 90% of Ghana's bondholders have approved a comprehensive overhaul of $13 billion worth of Eurobonds. The milestone follows a prior agreement with bilateral creditors in June.

The IMF expressed confidence in Ghana’s commitment.

"The authorities are committed to pursuing good-faith efforts to reach an agreement with other commercial external creditors," it said.

The IMF is poised to release $360 million to Ghana, raising total disbursements under the Extended Credit Facility to approximately $1.92 billion. The IMF staff team, led by Stephane Roudet, mission chief for Ghana, engaged with Finance Minister Mohammed Amin Adam, Bank of Ghana Governor Ernest Addison and representatives from government agencies during a meeting.

The agreement comes at a crucial time as Ghana, one of the largest producers of gold and cocoa, faces an economic crisis ahead of a 2024 presidential election.

Incumbent Vice President Mahamudu Bawumia and former President John Mahama are the main contenders for the election.