The $3 billion in cash that was received from the International Monetary Fund (IMF) has a low interest rate, according to the Finance Ministry.
The Executive Board of the IMF met in Washington on Thursday, May 17, 2023, and decided to grant Ghana’s request for a bailout.
The first installment of the loan has been received, the Finance Ministry reported in a post.
The ministry described the rate on the loan as being low and added that the $600 million is anticipated to restore macroeconomic stability and sustain the nation’s debts, among other things.
“The first tranche of $600million of Ghana’s low interest of $3billion Extended Credit Facility has been received to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth,” the Ministry tweeted on Saturday, May 20.
Stéphane Roudet, the head of the IMF mission in Ghana, has voiced optimism that the $3 billion bailout will lead to changes in the energy and cocoa industries.
He continued by saying that the program would also lead to measures that would promote private sector investment and increase foreign reserves.
“There will be reforms in the energy and cocoa sectors,” he said during a joint Ghana -IMF press conference.
“It will be restoring macroeconomic stability, for higher and more inclusive growth. It has reforms that will make the economy more resilient and likely to withstand shock in the future,” he added.