Ghana has been recognized as the second most indebted country in Africa to the International Monetary Fund (IMF) regarding concessional loans.
As per the IMF’s Quarterly Finances, in a report by 3news.com, the nation’s total loans owed to the institution stood at $2.914 billion as of October 31, 2024, accounting for 17% of all African borrowings from the IMF.
The only country that exceeded Ghana in indebtedness was the Democratic Republic of Congo, which had debts amounting to $2.256 billion SDRs.
Zambia came in third with $1.272 billion in loans outstanding.
This disclosure arises as Ghana faces a significant economic crisis, prompting it to pursue a $3 billion bailout from the IMF in January 2023.
The nation has to date obtained $1.92 billion from the Economic Credit Facility program.
Concessional lending denotes loans granted by the IMF under advantageous conditions, like low-interest rates and longer repayment timelines, to low-income nations.
These loans aim to facilitate economic growth and alleviate poverty.
Ghana and Zambia, confronted with substantial economic difficulties, have defaulted on their debts, requiring support from the IMF.
NKONKONSA.com
