<\/p>\n
The government could obtain a loan of about $3 billion from the International Monetary Fund as economic assistance.<\/p>\n
According to Bloomberg, the funding which will come in the form of balance of payment support will be spread within three years.<\/p>\n
A billion dollars is expected to come in immediately after the fund approves an economic programme by the government.<\/p>\n
\u201cThe amount is double what the country was considering a month ago as it tries to shore up its finances and gain access to the 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,\u201d it noted.<\/p>\n
The government began discussions with the International Monetary Fund in July 2022, following a directive by President Akufo-Addo to the Finance Minister to engage with the institution.<\/p>\n
The engagement with the IMF will seek to provide balance of payment support as part of a broader effort to quicken Ghana\u2019s build back in the face of challenges induced by the COVID-19 pandemic and, recently, the Russia Ukraine crises.<\/p>\n
The move comes as Ghana\u2019s economy is facing a number of challenges including a worsening public debt situation which has risen to about GH\u00a2393.4 billion or 78.3 per cent of GDP as of June 2022 , rising inflation which has risen to about 29.8 per cent in June this year, high fuel prices, cedi depreciation among others.<\/p>\n
The struggling economy has impacted negatively on the local currency which has almost hit GH\u00a29 to a dollar.<\/p>\n
Also, International rating agency, S&P on Friday, August 5, 2022, revised Ghana\u2019s rating from B-\/B to CCC+\/C.<\/p>\n
It also reviewed the country\u2019s economic outlook to negative, reflecting \u201cGhana\u2019s limited commercial financing options, and constrained external and fiscal buffers.\u201d<\/p>\n
Source: ghanaiantimes.com.gh<\/span><\/p>\n \u00a0<\/p>\n \u00a0<\/p>\n Featured Video\n<\/p>\n\n
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