<\/p>\n
Ghana\u2019s government is in talks over a loan of about $3 billion from the International Monetary Fund, according to two people familiar with the matter.<\/p>\n
The amount is double what the West African nation was considering\u00a0a month ago\u00a0as it tries to shore up its finances and win back access to global markets. The funding would be provided over three years, the people said, asking not to be identified because the talks are still in progress and public announcements have not been made.<\/p>\n
Calls to a finance ministry spokeswoman didn\u2019t connect.<\/p>\n
\u201cSince negotiations for the program are starting now, it\u2019s too early to comment on the final form the program will take,\u201d an IMF spokeswoman said in an emailed response. \u201cThe Extended Credit Facility for low-income countries is the Fund\u2019s main tool for medium-term support for countries facing protracted balance of payments problems, similar to Ghana\u2019s. The duration of such an arrangement is between three to four years, and extendable to five years.\u201d
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The final program is ultimately decided by the IMF\u2019s Executive Board, she said.<\/p>\n
The government began discussions with the Washington-based multilateral lender last month, reversing a pledge by President Nana Akufo-Addo\u2019s administration not to seek a financial program from the IMF. Ghana has been battling to stabilize a debt pile that increased to 78.3% of gross domestic product at the end of June from 62.5% five years ago.<\/p>\n
S&P Global Ratings last week became the latest rating company to cut its assessment of Ghana\u2019s ability to repay its debt,\u00a0downgrading\u00a0its rating by one notch to CCC+, seven levels below investment grade, and changing the outlook to negative from stable. Moody\u2019s Investors Service lowered Ghana\u2019s long-term debt one step deeper into junk territory to Caa1 on Feb. 4, following Fitch Ratings, which cut Ghana\u2019s rating a month earlier to B- from B.<\/p>\n
Source: Bloomberg<\/span><\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Featured Video\n<\/p>\n\n
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