Home » Ghana Tops IMF Debt List in Africa, Report Says

Ghana Tops IMF Debt List in Africa, Report Says

by Ikeoluwa Juliana Ogungbangbe

Ghana holds the distinction of being the most indebted African country to the International Monetary Fund (IMF), according to the Fund’s recent Quarterly Finances report for July 2023. Ghana’s debt to the IMF surged by 35.3% in 2023’s second quarter, with outstanding loans marked at Special Drawing Rights (SDR) 1.689 billion as of July 31, 2023. This sum translates to roughly $2.227 billion.

This latest data denotes an increase of $451 million SDR from the previous 1.246 billion SDR reported at the end of April 2023.

Following its compliance with stipulated conditions, Ghana received a $600 million disbursement from the IMF in June 2023. This effort aimed to recalibrate Ghana’s balance of payments and reinstate macroeconomic stability, stemming from negotiations with the IMF that began in July 2022.

The IMF’s report highlighted that the debt owed by Ghana constitutes 9.55% of the total African debt to the IMF, which stands at SDR 17.68 billion. Notably, Ghana has made repayments, returning about SDR 8 million, approximately $10.55 million, to the Bretton Wood institution. Despite its considerable debt, the IMF categorizes Ghana’s financial standing under concessional lending, indicating a low-interest financing setup.

Following Ghana’s top spot on the list of most indebted African nations to the IMF, the Democratic Republic of Congo (DR Congo) and Kenya are positioned in the second and third places, showcasing the continent’s varying levels of financial reliance on the international body.

By the close of July 31, 2023, the data revealed the DR Congo’s outstanding debt to the IMF was a significant SDR 1.142 billion. This figure underscores the country’s continued challenges in managing its finances and its dependency on external monetary aid for economic stabilization.

In a similar vein, Kenya, another major African economy, registered an IMF debt of SDR 1.008 billion. Such figures shed light on the nation’s economic health and the challenges it faces, prompting the need for financial assistance.

Recognizing the economic pressures and challenges faced by these two countries, the IMF has stepped in to provide crucial support to assist in balancing their payments. The DR Congo, in its recent interactions with the IMF, managed to secure a loan disbursement of SDR 153 million. This financial boost is intended to alleviate some immediate fiscal pressures and aid in more long-term economic planning.

Meanwhile, Kenya, given its strategic position in East Africa and its influential role in regional economic matters, obtained a loan disbursement of SDR 77 million. This assistance showcases the IMF’s commitment to ensuring that member countries have the necessary financial backing to navigate economic hurdles and work towards macroeconomic stability.

SOURCE: Ghanaweb

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