The government could obtain a loan of about $3 billion from the International Monetary Fund as economic assistance.
According to Bloomberg, the funding which will come in the form of balance of payment support will be spread within three years.
A billion dollars is expected to come in immediately after the fund approves an economic programme by the government.
“The amount is double what the country was considering a month ago as it tries to shore up its finances and gain access to the global markets. The funding would be provided over three years, the people said, asking not to be identified because the talks are still in progress and public announcements have not been made,” it noted.
The government began discussions with the International Monetary Fund in July 2022, following a directive by President Akufo-Addo to the Finance Minister to engage with the institution.
The engagement with the IMF will seek to provide balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the COVID-19 pandemic and, recently, the Russia Ukraine crises.
The move comes as Ghana’s economy is facing a number of challenges including a worsening public debt situation which has risen to about GH¢393.4 billion or 78.3 per cent of GDP as of June 2022 , rising inflation which has risen to about 29.8 per cent in June this year, high fuel prices, cedi depreciation among others.
The struggling economy has impacted negatively on the local currency which has almost hit GH¢9 to a dollar.
Also, International rating agency, S&P on Friday, August 5, 2022, revised Ghana’s rating from B-/B to CCC+/C.
It also reviewed the country’s economic outlook to negative, reflecting “Ghana’s limited commercial financing options, and constrained external and fiscal buffers.”
Source: ghanaiantimes.com.gh
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This government must provide real accountability to Ghanaians, we need to be told where every cedi is being spent. There is a gap between the resources that this government has gained and what they have delivered. It is becoming difficult to trust this administration.
If the world bank were to empty their coffers for Ghana, you will still squander it and go back to them. Ghana's problem is not about money, we have allowed block heads to take over political leadership because they have money, you cannot contest for political leadership in Ghana if you don't have money irrespective of the brilliant ideas you may have, that is the bane of mother Ghana. Those with ideas have no power and the people with power have no idea at all. Unfortunately the youths whose future is being stolen will line up the streets to celebrate them. Just check the numbers of youth who risk their lives on motorbikes and vehicles just to welcome presidential hopefuls who visit the districts and regions to campaign. Have you ever seen Akuffo Addo or John Mahama's son or daughter sitting on a motorbike in the campaign trail shouting at the top of their voices i.e. Nana ooo, nana oooo or JM, JM, JM. But these are the people whose lives will change for the better immediately their parents become president, on top of that they will still loot what belongs to everybody to guarantee and hustle free future for their children. A blessed country with all the natural resources at it's disposal and yet still carries a bowl in hand going round the globe doing ' lalaasulala'. Cocoa, timber, gold, bauxite, manganese, arable lands nationwide, 2 giant harbours, the sea, lots of water bodies etc have all turned into curses rather than a blessing because political beggars after begging to come to power claiming to represent the best interest of the people end up representing themselves. See the current mess Ghana currently finds itself. No illiterate leader with these resources will ever go bankrupt, he or she will feel ashamed to go to a neighbor for assistance, unfortunately politicians in Ghana don't know shame, if they knew shame they will not be attending public gatherings when invited.
MAKE THE CEDI THE KING BY ACCEPTING ALL EXPORTS IN CEDIS AS THE RUSSIANS DID TO PROP THE RUBBLE. WE PAY COCOA FARMERS IN CEDIS ANY WAY AND KEEP BUYING GOLD TO SHOREUP RESERVES, CONTINOUS GOLD BUYING IS KEY AND FOGET ABOUT GUPTA, AND DOLLAR EXCHANGERS THEY CAN GO TO IVORY COAST, TOGO, BENIN, NIGERIA TO OPEN ACCOUNTS TO SEEK DOLLARS AND ALL THESE DOLLAR OUTFLOWS WILL STOP BECAUSE BANK OF GHANA HAVE NOOBLIGATION TO PROVIDE EVERYONE DOLLARS. FOREIGNCOMPANIES DO EXPORT SOME OF THEIR FINISH GOODS AND THEY CAN ACCEPT WHATEVER CURRENCY THEY CHOOSE BUT BOG WILL ONLY PAY IN CEDIS IF THEY BUY LOCAL FROM THESE COMPANIES. CURRENTLY BECAUSE OF OUR LOWER CEDI IT MAKE OUR EXPORT CHEAPER.