Ghana agrees on $3 bn deal with IMF as country fights its worst economic crisis in decades

As Ghana fights its worst economic crisis in decades, the International Monetary Fund announced on Tuesday that the two parties had reached an agreement on a $3 billion loan line. The West African nation has experienced a dramatic decrease in its cedi currency since the beginning of the year, as well as inflation of more than 40% and rising debt.

According to the IMF statement, the government of Ghana has committed to "a wide-ranging economic reform programme" that would restore stability and debt sustainability.

The IMF's board will ratify the three-year financing arrangement.

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The situation prompted President Nana Akufo-administration Addo's to change course early this year and request assistance from the IMF after experts warned the nation ran the risk of missing debt payments.

In order to relieve a payment pressure, the administration has already announced a domestic debt exchange.

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Ghana, a major producer of cocoa and gold, also has oil and gas deposits, but its debt service costs have skyrocketed, and like the rest of sub-Saharan Africa, it has been severely impacted by the effects of the Covid epidemic and the Ukraine conflict.

(With inputs from agencies)

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