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IMF, Ghana agree first review of $3 billion loan programme

Published

1 year ago

October 7, 2023

A staff-level agreement over the initial review of a $3 billion loan programme has been reached between the Ghanaian government and the International Monetary Fund (IMF).

The agreement paves the way for a disbursement of $600 million once it is approved by the IMF’s executive board. The multilateral body says Ghana and its official creditors now quickly need to agree on a debt restructuring plan to get board approval and receive the money.

According to a government presentation to investors, at the end of 2022, its debts to nations like China and members of the Paris Club of creditor nations totalled $5.4 billion of the $20 billion foreign debt that needed to be adjusted. Around $30 billion worth of external debt was present overall.

As it struggled with its greatest economic crisis in a generation brought on by spiralling public debt, the West African nation requested the IMF’s financial assistance last year.

The three-year extended credit facility is subject to the restructuring of internal and external debt, as well as spending reductions and other fiscal adjustments. May saw the disbursement of the loan’s initial $600 million tranche to Ghana.

Despite being a major producer of oil, gold, and cocoa, Ghana has been experiencing the worst economic crisis in a generation, with double-digit inflation and skyrocketing public debt. Ghana was also among the first set of African nations to default on its foreign debt.

While noting on Friday that their growth had been more resilient than original estimates, with lowering inflation, a more stable currency rate, and better fiscal and external positions, the IMF praised Ghana’s road to economic recovery.

According to the report, Ghana is on target to cut its primary fiscal deficit by around 4 percentage points of GDP in 2023, as committed, and spending has stayed within programmed bounds. Meanwhile, recent anti-government protests in Accra, Ghana’s capital city, have been triggered by worries over the nation’s economic woes.

Related Topics:debt burden Featured Ghana IMF

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Moroccan annual inflation rises to 0.8% in November

Published

2 days ago

December 21, 2024

Ifeoluwa Dada

Morocco’s statistics office has confirmed that the country’s annual inflation rate, as determined by the consumer price index, increased from 0.7% in October to 0.8% in November.

Monthly, consumer prices decreased by 0.2% from October.

The primary driver of inflation, food costs, grew by 0.8% compared to the previous year, while non-food inflation climbed by 0.7%. Core inflation, which does not include more erratic items like food, increased 2.6% annually and 0.2% monthly.

According to the central bank, inflation is expected to average 1% this year, down from 6.1% last year.

Despite the Al-Haouz earthquake, a spike in inflation, and worldwide economic challenges, Morocco’s GDP grew by 3.4% in 2023.

A recovery in tourism, robust industrial exports, and rising private consumption—all bolstered by prudent macroeconomic policies—were the main drivers of growth.

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Nigeria’s $42bn foreign reserves enough for 9 months’ imports— Central Bank

Published

3 days ago

December 20, 2024

Ifeoluwa Dada

According to Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), the nation’s $42.01 billion in foreign reserves can cover imports of goods and services for almost nine months.

Cardoso promised Nigerians improved economic fortunes in 2025 while addressing the Senate Committee on Banking, Insurance, and Other Financial Institutions yesterday in Abuja at the presentation of the performance index report.

Cardoso stated: “External Reserves rose from $ 38.35 billion it was on September 30, 2024, to $ 42.01 billion as of December 12, 2024”.

He clarified that third-party receipts in Q3 2024 and revenues from taxes connected to crude oil were the main drivers of the rise in foreign reserves during the specified time.

“We saw remarkable improvements in our trade balance and maintained a current account surplus,” he added.

“Our external reserves level can finance over 9.09 months of import of goods and services or 13.91 months only, higher than the international benchmark of 3.0 months and a robust buffer against shocks”.

On cash shortage, the CBN boss reiterated the N150 million fine against any branch of banks caught illegally distributing new Naira notes to currency hawkers and unscrupulous elements and said the Nigerian economy will improve in 2025 through policies and measures.

He predicted a stronger economic future: “Despite our economy’s challenges, there are clear reasons for optimism.

“The gradual stabilization of the forex market, ongoing banking sector recapitalization, and positive growth trends in key sectors, especially the services sector, indicate a path toward recovery and stability.”