The Bank of Ghana and the Ministry of Finance are set to sign a Memorandum of Understanding outlining the terms for repaying the International Monetary Fund’s $3 billion lending facility.
The $3 billion loan which will be disbursed within 36 months has a 0% interest rate with a grace period of 5.5 years and a final maturity of 10 years.
The programme under the Extended Credit Facility (ECF) is aimed at restoring macroeconomic stability and bringing fiscal operations and public debt to sustainable levels, supporting structural reforms, and promoting strong and inclusive growth while protecting the poor and vulnerable.
It has a front-loaded fiscal adjustment of 5.1 percentage points of Gross Domestic Product (GDP) over 3 years (2023-2025) with the following Primary Balance (on a commitment basis) and fiscal adjustment (fiscal effort).
Ghana undertook among other conditions the domestic debt restructuring and secured financing assurances from its external creditors to arrive at the approval by the board on May 17, 2023.