Ghana maintains top spot as Africa’s leading borrower from IMF

Ghana has maintained its position as Africa’s most indebted country to the International Monetary Fund (IMF), with its loan to the institution surging by 35.3% in the second quarter of 2023.

According to the IMF’s Quarterly Finances report for July 2023, Ghana’s outstanding loans to the Bretton Woods institution reached Special Drawing Rights (SDR) 1.689 billion, equivalent to $2.227 billion, as of July 31, 2023. This represents an increase of $451 million SDR compared to the previous record of 1.246 billion SDR as of April 30, 2023.

Ghana’s renewed interaction with the IMF stems from a $600 million bailout package received in June 2023. This financial infusion was intended to rejuvenate the nation’s economy, which had weathered fiscal challenges.

Also, Ghana has already begun to repay a portion of its debt to the IMF, with an impressive SDR 8 million, equivalent to $10.55 million, already returned to the institution. This underscores the country’s commitment to meeting its obligations to the Bretton Woods institution, with the loan exposure being classified as concessional lending featuring favorable terms and low-interest financing.

In a parallel development, the Democratic Republic of Congo and Kenya have maintained their respective positions as the second and third most indebted nations to the IMF in Africa as of July 31st, 2023.

The DR Congo owed the IMF a substantial SDR 1.142 billion, while Kenya’s debt to the Fund amounted to SDR 1.008 billion. Both nations have also received disbursements of SDR 153 million and SDR 77 million, respectively, aimed at shoring up their balance of payments.

Sudan and Uganda have likewise held onto their fourth and fifth positions in the ranking, with their combined exposure to the IMF estimated at SDR 992 million and SDR 812 million, respectively. Uganda, in particular, received a disbursement of SDR 91 million to fortify its fiscal economy.

Collectively, the rest of the African nations maintain substantial debt obligations to the IMF, with an overall sum of SDR 11.32 billion underscoring the widespread engagement of African countries with the international financial institution.

SOURCE: Coverghana.com.gh