IMF Directs Ghana To Get Financing Assurances From Partners Before $3 Billion Loan Approval

IMF Directs Ghana To Get Financing Assurances From Partners Before $3 Billion Loan Approval

  • Ghana has been directed to secure financing approval from its partners and creditors as quickly as possible to facilitate the IMF board approval of a $3 billion loan request
  • Director of communication at IMF Julie Kozack made the comments when she responded to a question about the status of Ghana's IMF programme during a programme in Washington DC
  • Her comments follow strong assurances by Nana Akufo-Addo that the loan will be secured by end of March 2023

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Ghana has been directed by the International Monetary Fund to secure financing assurances from its partners to facilitate the approval process of the request for a $3 billion loan.

IMF director of communication Julie Kozack noted that such assurances from Ghana's partners and creditors would ensure the IMF board approves the loan request.

“Financing assurances from partners and creditors are necessary for presenting the programme request to the IMF’s Executive Board for approval”, she told journalists in Washington DC.

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IMF wants Ghana to secure financing assurances to be able to get a board approval for the $3billion loan.
L-R: Ken Ofori-Atta and Julie Kozack. Source: Facebook/@Parliament.of.Ghana, @IMF
Source: Facebook

Kozack made the comments in response to a question on the status of Ghana's request for the loan from the Fund.

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“We’re calling on bilateral creditors to support Ghana’s effort to restore debt sustainability, form an official creditor committee, and deliver the necessary financing assurances as soon as possible”, she added.

President Nana Akufo-Addo assured Ghanaians recently that the loan would be approved by end of March 2023. But with just days to this deadline, Ghana has been asked to secure financing assurances from creditors and partners.

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The finance minister has disclosed that Ghana is making good progress with debt restructuring talks with one of its major creditors, China.

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Ken Ofori-Atta said Ghana is most likely to secure external assurances from the Asian giant soon.

Ghana's finance minister tweeted on Friday, March 24, that he was optimistic about Ghana getting the loan that is expected to return confidence and fix the balance of trade imbalances.

China remains one of Ghana's biggest creditors.

Ghana reaches $3 billion deal with IMF

Meanwhile, has reported that Ghana in December 2022 agreed on a $3 billion credit deal with the International Monetary Fund as part of the country's battle to end its worst economic crisis in decades.

Ghana has been facing more than 50% inflation, growing debt and a sharp decline in its cedi currency since the start of 2022.

The IMF said Ghana's government had committed to "a wide-ranging economic reform program" that will restore stability and debt sustainability.

The three-year IMF loan agreement has yet to be approved by the fund's board.

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