Ghana has once again secured its position as Africa’s foremost borrower from the International Monetary Fund (IMF), according to data revealed in the IMF’s Quarterly Finances report for July-end 2023.
Ghana’s debt to the IMF has surged by a significant 35.55% during the period under review, underscoring the nation’s growing financial reliance on the IMF.
As of July 31, 2023, Ghana’s debt to the IMF stands at a substantial $1.689 billion in Special Drawing Rights (SDR), a noteworthy increase from the $1.246 billion SDR recorded just three months earlier, on April 30, 2023.
To put this into perspective, Ghana’s debt accounts for approximately 9.55 percent of the $17.68 billion in total loans owed by African countries to the IMF. This staggering figure cements Ghana’s position as the IMF’s primary African debtor.
Ghana’s repayment to the IMF is measured in Special Drawing Rights (SDR), with $1 SDR equivalent to approximately US$1.34294. This means that Ghana has successfully repaid a total of SDR 8 million to the IMF, contributing to the nation’s outstanding debt reduction.
Following Ghana on the list of the African countries with the largest outstanding loans to the IMF are Kenya and the Democratic Republic of the Congo. Kenya’s debt to the IMF stands at SDR 1.008 billion, while the Democratic Republic of the Congo owes the Fund SDR 1.142 billion.
Sudan and Uganda round out the top five positions in Africa, owing the IMF SDR 992 million and SDR 812 million, respectively.
The rest of the African continent collectively owes a substantial 11.32 billion SDR to the IMF, demonstrating the widespread financial ties between the IMF and African nations.
Ghana’s status as Africa’s leading debtor to the IMF raises questions about the country’s financial management and its ability to navigate the challenges posed by its growing debt burden. As the nation grapples with this financial predicament, observers are keen to see how Ghana’s leadership addresses the issue and formulates strategies to secure its economic stability.
Photo source: Daily trust
By: Montel Kamau
Serrari Financial Analyst
20th September, 2023
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