The International Monetary Fund’s executive board has approved a $3 billion, three-year extended credit facility for Ghana, three senior Ghanaian officials said on Wednesday, as the West African country tries to overcome its worst economic crisis in a generation.
Reuters reports that two other sources familiar with the process said the IMF agreement marked an important step for Ghana, but cautioned that authorities there faced long negotiations with creditors, pointing to Zambia where the process has been mired in delays.
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The IMF and Ghana’s finance ministry did not immediately respond to requests for comment.
Ghana’s official sector creditors formed a committee co-chaired by China and France and agreed to debt restructuring talks, the Paris Club said last week. This paved the way for a sign-off on the IMF loan, which was agreed at staff level in December.
Ghana faces a debt overhaul after its already strained finances buckled under economic fallout from COVID-19 and Russia’s invasion of Ukraine.