IMF team arrives in Ghana on Monday to hold negotiations on $3 billion loan request

ACCRA— A delegation from the International Monetary Fund is expected to arrive in Ghana on Monday to hold official negotiations with the government of Ghana for a loan request.

The negotiations will centre on policies and reforms that could be supported by the IMF under an economic support programme for Ghana.

Ghana is targeting an amount of US$3 billion over three years from the Fund once an agreement on a programme is reached.

Government, in turn, hopes to complete negotiations by end of this year in order to receive the funds in the first quarter of 2023.

The IMF officials are expected to be in the country until Oct 7.

Meanwhile, Government has routinely explained that recent economic headwinds are attributable largely to the ravages of the COVID-19 pandemic, the ongoing Russia-Ukraine war and the banking sector clean-up.

The rippling effect has been an increase in the cost of living, record high inflation rates and downgrades of the economy by rating agencies such as S&P and Fitch – a situation which has dealt a heavy blow to government’s ability to access the international capital market.

The Cedi has also been on a free fall compelling the Bank of Ghana to resort to hiking its monetary policy rate to deal with the situation.

The worsening economic situation compelled the government in July to initiate contact with International Monetary Fund for an economic support programme.

Source: NAM NEWS NETWORK