The IMF has reached an initial agreement with Ghana for a $3 billion (£2.4 billion) bailout program.
The Extended Credit Facility, as it is known, is set to run for three years. It was announced following the conclusion of an IMF team’s visit to the country. It is intended to aid in the restoration of Ghana’s economic stability and debt sustainability.
Ghana is a major producer of gold and cocoa, but its once-thriving economy has been plagued by alarmingly high levels of debt.
The IMF funds, combined with the government’s plans to restructure its debt, should reassure creditors. After losing half of its value earlier this year, Ghana’s currency, the cedi, rallied against the US dollar last week. Inflation has risen to more than 40% in recent months, and the country is in desperate need of funds to turn the economy around.
