Ghana retains 1st position as Africa’s highest borrower from IMF

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Ghana retained its position in Africa as the most indebted country to the International Monetary Fund as the country’s loan to the Fund shot up by 35.3% in the second quarter of 2023.

According to the Fund’s Quarterly Finances July-ending 2023, the country’s outstanding loans to the Bretton Wood institution stood at Special Drawing Rights 1.689 billion as of July 31, 2023, equivalent to $2.227 billion.

This is $451 million SDR, higher than the 1.246 billion SDR recorded as of April 30, 2023.

Ghana received $600 million as a bailout package from the IMF in June 2023 to revive its economy after going through fiscal challenges.

According to the report, the country’s loan outstanding to the Fund is 9.55% of Africa’s total of SDR 17.68 billion.

 Importantly, Ghana had repaid SDR 8 million, equivalent to $10.55 million to the IMF.

The nation’s loan exposure to the Bretton Woods institution is classified as concessional lending with a low-interest financing.

Meanwhile, Democratic Republic of Congo and Kenya also maintained their 2nd and 3rdpositions respectively in Africa with the largest outstanding loans to the Fund as of July 31st, 2023. Whilst, DR Congo’s owed the IMF SDR 1.142 billion, Kenya was indebted to the Fund to the tune of SDR 1.008.

They also received a disbursement of SDR 153 million and SDR 77 million to boost their balance of payments.

Sudan and Uganda also maintained their 4th and 5th respectively with their exposure to the Fund estimated at SDR 992 million and SDR 812 million. Uganda also received a disbursement of SDR 91 million to aid its fiscal economy.

The rest of Africa was indebted to the tune of SDR 11.32 billion to the IMF.