‘Ghana beyond aid’ no longer: West Africa’s former model student forced to turn to IMF

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© Nipah Dennis, AFP

Formerly praised for its stability and good governance, Ghana has been facing a severe economic crisis since the onset of the Covid-19 pandemic and the war in Ukraine. To prevent Accra from defaulting on its debt, the International Monetary Fund (IMF) on Wednesday approved a $3 billion loan in exchange for austerity measures.

Ghana is finally getting some breathing room. The International Monetary Fund (IMF) approved a three-year, $3 billion loan on May 17 to get the West African country out of its worst economic crisis in decades.

The package "aims to restore macroeconomic stability and debt sustainability while laying the foundation for an inclusive recovery", Kristalina Georgieva, the Fund’s managing director, said in an IMF statement.

The country is expected to receive an immediate first disbursement of about $600 million. The agreement marks the culmination of a round of negotiations that began in December 2022, when Ghana announced that it would need to default on its debts.

IMF approval was far from a foregone conclusion. However, a promise from its creditors, led by France and China, to restructure its debt may have broken the deadlock.

The end of 'Ghana beyond aid'

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