Ghana Expects IMF Loan Approval by June, Financial Assurances by May

Ghana expects the International Monetary Fund's board to approve a $3 billion loan by the end of the second quarter of 2023, Finance Minister Ken Ofori-Atta said in a presentation on Thursday, Reuters reported. The embattled West African country secured a staff-level agreement with the IMF for the $3 billion support package in December. But the Fund requires bilateral lenders to provide assurances they will restructure its debt as a condition of signing off on the loan. Ofori-Atta said that official creditor financial assurances are expected by May and that the country's domestic debt exchange programme would yield 38 billion cedis of debt service savings in 2023. He added that $20 billion of external debt was eligible for restructuring, 66% of the external debt stock. Of that, $5.4 billion in official creditor debt will be restructured. A memorandum of understanding with official creditors and an agreement in principle on Eurobond restructuring are expected by July, with a 2030 Eurobond partially guaranteed by the World Bank included in the restructuring, the minister said. Read more.