Ghana's official creditors are poised to grant financing assurances and form a committee co-chaired by France and China - key steps for the nation to secure a $3 billion International Monetary Fund (IMF) loan, sources told Reuters.
The country's bilateral lenders are expected to formally grant financing assurances as soon as Friday - confirmation that they will then start talks to give Ghana the relief needed to make its debt sustainable, said the sources with direct knowledge of the process speaking on condition of anonymity.
The assurances could pave the way for the IMF executive board to approve the $3 billion loan next week, one of the sources said.
IMF spokesperson Julie Kozack said in a Thursday news briefing that the Fund is hopeful its executive board can quickly consider the Ghana program once enough official bilateral creditor assurances have been secured. The package was agreed at the staff level in December.
"We have seen strong progress toward creditors delivering on these financing assurances and we're hopeful that they can be delivered very rapidly," Kozack said.
Ghana's finance ministry and China's finance ministry did not immediately reply to a request for comment. The Paris Club declined to comment.
The West African nation is struggling through its worst economic crisis in a generation, defaulting on most of its external debt in December and completing a domestic debt exchange in February.
IMF staff agreed to the $3 billion support package in December, but financing assurances from official creditors are needed before the fund's board will approve disbursements.
Like other smaller, riskier emerging market countries including Sri Lanka and Zambia, Ghana faces a debt overhaul after its already strained finances buckled under the economic fallout from COVID-19 and Russia's invasion of Ukraine.
The country is negotiating its international debt rework under the Group of 20's Common Framework platform, with $5.4 billion debt to official creditors eligible for restructuring, according to government data. The nation is also in talks to rework $14.6 billion of debt to private overseas creditors.
Latest Stories
-
2024 poll: The person I defeated twice can’t succeed me – Akufo-Addo
54 seconds -
NBA: Miami Heat beat Boston Celtics to even series
9 mins -
Two sentenced for stealing over 1,000 bags of rice
15 mins -
Xavi to remain as Barcelona coach until at least June 2025
20 mins -
2Pac’s estate threatens to sue Drake over use of late rapper’s AI-generated voice
22 mins -
Yaw Nsarkoh: The President’s letter on the KPMG (SML) Report
22 mins -
Manasseh’s praise and criticism of Akufo-Addo’s action on the SML scandal
27 mins -
KPMG’s report confirms we haven’t been paid $100m – SML
32 mins -
SML refutes KPMG’s claim of GH¢1bn payment, says it’s inaccurate
38 mins -
Mahama’s speech at Prof Opoku-Agyemang’s unveiling as his running-mate
46 mins -
Asiedu Nketia’s full speech at official unveiling of Prof. Naana Jane Opoku-Agyemang as running-mate
52 mins -
We are committed to helping build a better Ghana – SML
60 mins -
‘They don’t even pick up my calls’ – African Games gold medalist laments over unpaid bonuses
1 hour -
Fifi Kwetey’s full speech at official unveiling of Prof. Naana Jane Opoku-Agyemang as running-mate
1 hour -
About 282 million people face acute food insecurity in 2023 – GRFC
1 hour