According to a statement released on Tuesday, the International Monetary Fund, IMF will dispatch a team to Ghana this week to start negotiations on a potential loan package for the West African country, Africa Today News, New York can confirm.
President Nana Akufo-Addo of the country earlier rejected requests for financial assistance from the IMF, but last week he approved the action as the nation battles skyrocketing inflation.
‘On the basis of a request from the Ghanaian authorities, an IMF staff team will in the coming days kick-start discussions on a possible program to support Ghana’s homegrown economic policies,’ Carlo Sdralevich, IMF mission chief for Ghana, disclosed in a statement.
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‘We are at an early stage in the process, given that detailed discussions are yet to take place,’ Sdralevich said.
He will lead the International Monetary Fund staff team visit to Accra July 6-13.
The announcement came followed two days of protests in the capital over the rising cost of food and fuel, after the country was hit with inflation of more than 27 percent in May — the highest in almost two decades.
Africa Today News, New York reports that brawls have erupted in the hung parliament as the government tries to push tough policies it believes could salvage the economy.
Data from Ghana’s central bank indicates the country’s debt-to-GDP ratio was 80.1 percent at the end of last year, and fuel prices have shot up as a result of Russia’s invasion of Ukraine.
‘The IMF stands ready to assist Ghana to restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth, and address the impact of the war in Ukraine and the lingering pandemic,’ said Sdralevich.