Ghana ranks second in global IMF poverty loans

Ghana ranks as the world’s second country indebted under the International Monetary Fund (IMF) Concessional Lending and Debt Relief Trust.

The country holds an outstanding exposure of 2.242 billion Special Drawing Rights (SDR) representing 17% of the total borrowings from the IMF.

This is captured in the IMF’s latest financial statements and quarterly reports ending October 31, 2024.

Specifically, the facility classified under concessional lending is offered at low interest rates, with the Poverty Reduction and Growth Trust (PRGT) providing financial support to low-income countries on favourable terms within one to three years.

Ethiopia emerged first with an IMF debt of 2.256 billion SDR, while Zambia placed third with an SDR indebtedness of 1.272 billion.

Following in fourth and fifth positions were Kenya and Ivory Coast, respectively. The remaining SDR (44 %) were owed to the IMF by other countries.

In terms of regional breakdown of the outstanding poverty loans, Africa held a chunk amounting to 78% percent.

The least regional receiver was Europe. It accounted for only one percent.

Ghana along with Zambia, has defaulted on its debt obligations compelling both countries to seek financial assistance from the Fund.

In particular, Ghana in 2023 turned to the IMF for economic assistance amid severe financial challenges.

A $3 billion bailout was approved under the IMF Extended Credit Facility (ECF) to help stabilize the economy.

Ghana has so far received $1.92 billion from the program with the outstanding tranches expected in the coming months.