Government could secure $3 billion from the International Monetary Fund to stabilise the economy.
Joy Business understands that the fund which will come in the form of balance of payment support will be spread within three years.
A billion dollars is expected to come in immediately if the Fund approves an economic programme by the government.
The 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.
“Since negotiations for the programme are starting now, it’s too early to comment on the final form the programme will take,” an IMF spokeswoman said in an emailed response to Bloomberg.
“The Extended Credit Facility for low-income countries is the Fund’s main tool for medium-term support for countries facing protracted balance of payments problems, similar to Ghana’s. The duration of such an arrangement is between three to four years, and extendable to five years”, she pointed out
She added that the final programme is ultimately decided by the IMF’s Executive Board,
The government began discussions with the Bretton Wood institution in July 2022, reversing President Akufo-Addo’s administration pledge not to seek a financial programme from the IMF.
Ghana has been struggling to stabilise a rising debt which hit 78.3% of Gross Domestic Product at the end of June 2022, from 62.5% five years ago.
The struggling economy has impacted negatively on the cedi which has almost hit ¢9 to a dollar. This has also pushed inflation up significantly.
Ratings agency, S&P on Friday, August 5th, 2022, revised Ghana’s rating from B-/B to CCC+/C, putting the country’s creditworthiness into junk status.
It also reviewed the country’s economic outlook to negative, reflecting “Ghana’s limited commercial financing options, and constrained external and fiscal buffers.”
According to Marketwatch, the American based credit rating agency, argued that the Covid-19 pandemic and the Russian invasion of Ukraine has complicated Ghana’s fiscal and external imbalances.
Latest Stories
-
Book Review: Building for the Future – Positioning Ghana’s Construction Industry for Sustainable Growth
4 minutes -
We’ve not been called to make money from gospel music – Kofi Owusu Peprah
8 minutes -
PUSAG hails game-changing legal education reform
14 minutes -
Simon Asaah becomes first Ghanaian to officiate at World Aquatics Championships
26 minutes -
Why cloud technology is a game-changer for Ghana’s small businesses
1 hour -
Concerned Youth of Asante calls for peaceful co-existence between Ghanaians and foreign nationals
2 hours -
Minority slams Finance Minister over ‘shocking’ justification for sacking of over 1,000 workers
2 hours -
IMF edges 2025 growth forecast slightly higher, warns tariff risks still dog outlook
2 hours -
BoG printed money to pre‑finance GoldBod – Amin Adam claims
2 hours -
Minority ‘exposes’ Finance Minister on misleading information in Mid-Year Budget presentation
2 hours -
SeamlessHR and HRCC forge partnership for HR development in Ghana
2 hours -
Joy FM kicks off ‘Sustainability Month’ on August 4 to tackle daily living challenges
2 hours -
GCAA wins 2025 UG Corporate Football League
2 hours -
Minority bemoans challenges faced by businesses over alleged Dollar shortages
2 hours -
‘Cedi no apicki, but Abochi get the Dollar’ – Minority responds to claims on forex
2 hours