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Ghana expects the International Monetary Fund’s board to approve a $3 billion loan by the end of the second quarter of 2023, Finance Minister Ken Ofori-Atta said in a presentation on Thursday.
According to Ghana’s finance minister, official credit or financial assurances are expected by May 2023.
The country’s domestic debt exchange programme would yield 38 billion cedis ($3.3 billion) of debt service savings in 2023, Ken noted. Accra is facing economic pressures following its inaccessibility to the Eurobond market.
Condition in the market was tightened as the country over reached its borrowing capability amidst dwindling income, largely driven by persistent fiscal slippage.
Recall that Ghana was asked to restructure its debt in order for the International Monetary Fund (IMF) executive board to approve the staff-level support package.
Ofori-Atta said $20 billion were eligible for external debt restructuring, 66% of which is under the form of external debt stock. Another $5.4 billion in official creditor debt will also be restructured.
The government also aims to bring rampant inflation down to 8% in the medium term and is targeting real GDP growth of 5% over the same period.
A memorandum of understanding with official creditors and an agreement in principle on Eurobond restructuring is expected by July, the minister said.
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