Ghana on Tuesday agreed on Credit deal worth $3 billion with International Monetary Fund (IMF) as part of The state battle to end its worst economic crisis in contracts.
West African country is facing over 40% risky inflation debt burden and sharp decline in cedi made it since start of The year.
The International Monetary Fund said Ghana government He committed to “widespread economic reform.” program”It will restore stability and debt sustainability.
“This is really dangerous times And the in A really difficult economic environment, Finance Minister Kenneth Ofori Atta told reporters, ” in Accra.
“But this day is paving way for IMF management and executive board to agree to Ghana program order early, hopefully, next year. “
the three-year The IMF loan agreement has not been approved by the Fund board.
The program also Aims to reduce Inflation, strengthening the economy and its resilience in the face of external shocks and improvement market Confidence in said the International Monetary Fund.
One of the largest producers of cocoa and gold, Ghana also It has oil and gas reserves, but its debt rose, f like the rest of Sub-Saharan Africa, it has been hit hard Through the repercussions of the COVID-19 pandemic and the Ukraine war.
The crisis forced President Nana Akufo-Addo government to reverse its position earlier this year And the pursuit of the International Monetary Fund help Economists have warned of hypothetical on debt payments.
The government she has already announced Sweetened debt swap as part of The program to mitigate the crisis in payments and soon It is expected to publish details about the foreign restructuring debt.
‘Good news”
International Monetary Fund mission said the head of the International Monetary Fund Stefan Rudette board consent for The deal will come after Ghana’s creditors give confirmations and debt exchange program that would suffice.
“What is very important for The International Monetary Fund is that government strategy As a whole it will suffice to put it debt on sustainable path and fetch debt sustainability over average term,” He said.
The government she has already increased value-added A tax (Value Added Tax) of 2.5% and a hiring freeze in the state sector help Reducing spending and increasing local revenues.
Officials say vulnerable groups will be protected, however critics We are concerned The government program will lead to me more austerity.
“Ghana has reached agreement at the personnel level with IMF completely good newsalthough we have not yet obtained a file full details. But on All, it will be easier final “Agreement,” Ghanaian economist Daniel Anim Amarti said.
“The government Really needs a bailout for macroeconomic stability and credibility.”
debt payments currently gobble up more From half of government Revenues. 50% slice in Sir against The dollar she has also Ghana increase debt This is worth 6 billion dollars year.
Major credit rating agencies lowered their forecasts on Ghana reflects market Fears that the country may be at risk of losing it debt payments.
The International Monetary Fund negotiations came after a new tax on electronic transactions, known as e-tax, faced resistance f failed To generate expected revenue levels for The government.
