By Ashiadey Dotse
Ghana has been named the second most indebted African country to the International Monetary Fund (IMF) for concessional loans, according to the IMF’s latest financial report.
As of October 31, 2024, Ghana owed the IMF $2.914 billion, representing 17% of Africa’s total borrowing from the institution. The Democratic Republic of Congo topped the list with $2.256 billion in Special Drawing Rights (SDRs), while Zambia ranked third with $1.272 billion.
This announcement comes as Ghana struggles with a severe economic crisis that led the country to seek a $3 billion bailout from the IMF in January 2023. So far, Ghana has received $1.92 billion under the Economic Credit Facility program.
Concessional loans are provided by the IMF to low-income countries on favorable terms, including low-interest rates and longer repayment periods. These loans aim to support economic growth and reduce poverty.
Both Ghana and Zambia have defaulted on their loans, reflecting the economic difficulties faced by the two nations and the need for international assistance.
