IMF, Ghana to Discuss Possible $3bn Loan to Support Economy

Ndubuisi Francis in Abuja

A delegation from the International Monetary Fund (IMF) is billed to visit Ghana from today to begin initial discussions about a possible $3 billion bailout loan.

Statistics indicate the country’s debt-to-GDP ratio was 80.1 per cent at the end of last year, and fuel prices have shot up as a result of the Russia-Ukraine war.

The visit, which will run between July 6th and 13th, comes as the West African nation faces protests against spiraling inflation and other economic woes.

Protests began late June as hundreds took to the streets of the capital Accra to denounce price hikes on basic commodities amid an economic downturn.

Ghana had previously refused to seek IMF support.

In a statement, IMF mission chief for Ghana, Carlo Sdralevich said: “On the basis of a request from the Ghanaian authorities, an IMF staff team will in the coming days kick-start discussions on a possible programme to support Ghana’s homegrown economic policies.

“We are at an early stage in the process, given that detailed discussions are yet to take place.

“The IMF stands ready to assist Ghana to restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth, and address the impact of the crisis in Ukraine and the lingering pandemic.”

The announcement came in the aftermath of two days of protests in the capital, Accra over the rising cost of food and fuel, after the country was hit with a more than 27 per cent inflation May — the highest in almost two decades.

However, labour unions, civil service organisations and citizens in Ghana have severely criticised the government for its decision to seek IMF help.

Critics of the bailout plan said the economic hardship being endured by the people of government would get worse with IMF restrictions.

IMF’s social media platforms have been inundated with comments from Ghanaian citizens warning the fund against bailing the Ghanaian government out unless enough fiscal disciplinary measures are put in place.