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IMF, Ghana agree staff-level $3 billion loan-program review pact

Published

3 months ago

October 6, 2024

A $3 billion IMF loan programme for Ghana has been the subject of a third review by staff and officials of the International Monetary Fund (IMF).

Under the G20’s Common Framework programme, the West African producer of cocoa and gold is almost finished with debt restructuring. The company defaulted on the majority of its $30 billion international debt in 2022.

“Ghana has made remarkable progress on its public debt restructuring,” the fund said in a statement, adding that the performance of the programme was “generally satisfactory.”

According to the government, an overhaul of $13 billion worth of Eurobonds has been accepted by more than 90% of bondholders in Ghana. This approval comes after a June agreement with bilateral creditors.

“The authorities are committed to pursuing good-faith efforts to reach an agreement with other commercial external creditors,” the IMF said.

Ethiopia is the only nation on the continent that is still trying to reform its debt under the Common Framework, with Ghana’s debt rework nearly finished. In an email statement, the Official Creditors group, whose communications are managed by the Paris Club, commended the progress.

“We see that the common framework process has gained traction and can move quicker,” the statement said.

Ghana would have access to $360 million in funding when the IMF’s executive board approves the staff-level agreement, according to the institution.

In May of last year, the IMF board authorised Ghana’s current credit program, which runs out in 2026.

According to the government’s June statement, Ghana’s debt restructuring is anticipated to lower its debt stock by $4.7 billion and give cash flow assistance totalling $4.4 billion for the IMF program.

“Economic growth in the first half of 2024 was much higher than initially envisaged,” said the IMF.

According to official data, Ghana’s economy expanded at its quickest rate in five years in the second quarter. As a result, officials began reducing interest rates in response to indications that inflation was beginning to decline.

At a joint news conference with the government, Stephane Roudet, the IMF’s Mission Chief for Ghana, stated that the organisation expected to update its growth prediction for Ghana, but he did not provide an exact amount.

Related Topics:Featured Ghana IMF loan-program

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Moroccan annual inflation rises to 0.8% in November

Published

4 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

5 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.”