Dec. 13 (UPI) — The International Monetary Fund reached an agreement with Ghana on Tuesday for a $3 billion bailout to help the West African nation restructure its unsustainable debt.
Ghana is facing more than 40% inflation and a sharp decline in its currency since the beginning of the year.
“The Ghanaian authorities have committed to a wide-ranging economic reform program, which builds on the government’s Post-COVID-19 Program for Economic Growth (PC-PEG) and tackles the deep challenges facing the country,” Stephane Roudet, IMF’s mission chief to Ghana, said in a statement.
IMF managers and board members still must approve the three-year agreement, which would come under a program providing financial assistance to countries with balance-of-payments problems. Ghana’s partners and creditors also must acknowledge receiving financing assurances, the IMF statement said.
Ghana’s finance minister Ken Ofori-Atta said during a press conference that Ghana was “committed to the program and will work towards meeting the demands”. He said the agreement will help restore economic stability, tackle price spikes and strengthen the currency.
“We pray that this will be the last [support needed]. That is why the program will be that strong,” he said.
