Ghana Ranks Second Globally in IMF Poverty Loan Debt
Ghana Faces Second-Highest IMF Poverty Loan Debt Globally
- The country owes 2.242 billion Special Drawing Rights
- This debt is part of the IMF’s Poverty Reduction and Growth Trust
- Africa remains the most affected region, accounting for 78% of the outstanding poverty loans
The country owes 2.242 billion Special Drawing Rights (SDR), which represents 17% of total borrowings from the IMF.
This debt is part of the IMF’s Poverty Reduction and Growth Trust (PRGT), which provides low-interest loans to low-income nations, typically with terms lasting one to three years.
Ethiopia holds the top spot with an IMF debt of 2.256 billion SDR, while Zambia ranks third with 1.272 billion SDR in debt. Kenya and Ivory Coast follow in fourth and fifth positions, respectively.
Africa remains the most affected region, accounting for 78% of the outstanding poverty loans, while Europe has the smallest share at just 1%.
Both Ghana and Zambia have defaulted on their debt obligations, prompting them to seek further financial assistance from the IMF.
Ghana, facing severe economic challenges in 2023, secured a $3 billion bailout under the IMF’s Extended Credit Facility (ECF) to help stabilize its economy. So far, the country has received $1.92 billion, with additional funding expected in the coming months.
