Ghana has once again secured its status as the most indebted country to the International Monetary Fund (IMF) in Africa, with a substantial 35.3% increase in its loan obligations during the second quarter of 2023.
According to the IMF’s Quarterly Finances report for July 2023, Ghana’s outstanding loans to the Bretton Wood institution reached an impressive Special Drawing Rights (SDR) 1.689 billion as of July 31, 2023, equivalent to a staggering $2.227 billion. This figure marks a significant rise of $451 million SDR compared to the $1.246 billion SDR recorded just three months earlier on April 30, 2023.
Ghana’s climb in indebtedness to the IMF can be attributed to a $600 million bailout package it received from the IMF in June 2023, aimed at revitalizing the country’s economy, which had faced severe fiscal challenges. Remarkably, Ghana managed to repay SDR 8 million, equivalent to $10.55 million, to the IMF, showcasing its commitment to managing its financial obligations effectively.
As of the IMF’s latest report, Ghana’s loan outstanding to the Fund now accounts for an impressive 9.55% of Africa’s total SDR 17.68 billion. It’s important to note that Ghana’s exposure to the Bretton Woods institution falls under the category of concessional lending, which offers low-interest financing to support economic growth and development initiatives.
In the rankings, the Democratic Republic of Congo and Kenya also maintained their 2nd and 3rd positions, respectively, as Africa’s countries with the largest outstanding loans to the IMF as of July 31, 2023. DR Congo owed the IMF SDR 1.142 billion, while Kenya’s debt to the Fund amounted to SDR 1.008 billion. Both countries received disbursements of SDR 153 million and SDR 77 million, respectively, to bolster their balance of payments.
Sudan and Uganda, holding 4th and 5th positions, respectively, in Africa’s IMF debt ranking, maintained their exposures to the Fund at an estimated SDR 992 million and SDR 812 million. Uganda also received a disbursement of SDR 91 million to support its fiscal economy.
Overall, the rest of Africa collectively owed a substantial SDR 11.32 billion to the IMF, underscoring the region’s reliance on the Fund for financial support and economic stability.