The International Monetary Fund approved a $3 billion loan for Ghana on Wednesday, with the first immediate disbursement amounting to around $600 million.
According to Leadership, Ghana is a West African nation suffering from severe economic crisis.
The Extended Fund Facility will fund the 36-month program, which was approved by the IMF board.
In an IMF release, according to Fund Managing Director, Kristalina Georgieva, it intends to “restore macroeconomic stability and debt sustainability, as well as implement broad-ranging reforms to build resilience for a stronger and more inclusive growth.”
Last but not least, Kristalina Georgieva noted, “an ambitious program of structural reforms is being put in place to revive private sector-led growth by strengthening the business environment, governance, and productivity.
The IMF welcomed the recent pledge of its creditor countries, led by France and China, to begin negotiations for a restructuring of its debt and stated on Friday that Ghana had offered sufficient guarantees to benefit from an aid plan.
Ghana opted to turn to the IMF after becoming weaker as a result of the conflict in Ukraine, and the two countries pre-agreed in December to obtain 3 billion dollars in loans, spread over three years, subject to the adoption of economic reforms.
Ghana, a significant producer of cocoa and gold, also has gas and oil reserves, but due to the Covid-19 outbreak and the conflict in Ukraine, its debt load has skyrocketed, as it has in other sub-Saharan African nations.
The greatest economic crisis in decades has compelled President Nana Akufo-Addo to change course and appeal to the IMF in order to avert the threat of default that some economists have highlighted.