Ghana's Official Creditors Pave Way for IMF Sign-Off on $3 Billion Loan

Ghana's official creditors have formed a committee co-chaired by China and France to launch debt restructurings talks, the Paris Club said on Friday, paving the way for a sign-off on a $3 billion International Monetary Fund loan for the country, Reuters reported. The West African nation is struggling through its worst economic crisis in a generation, defaulting on most of its external debt in December and completing a domestic debt exchange in February. IMF Managing Director Kristalina Georgieva said the statement by official creditors provided "the necessary financing assurances for the IMF Executive Board to consider the proposed Fund-supported program and unlock much needed financing from Ghana’s development partners". Ghana secured a staff-level agreement with the IMF for the $3 billion support package in December. But for the money to be disbursed, the IMF executive board must formally approve it - a step that required prior financing assurances from official creditors. Read more.