Ghana Struggles with High Debt, Ranks Second in IMF Poverty Loans

Jan 9, 2025 - 13:09

Accra, Ghana - 09 Jan, 2025 - Ghana has become the world's second most indebted country to the International Monetary Fund (IMF) under the Concessional Lending and Debt Relief Trust, with an outstanding exposure of 2.242 billion Special Drawing Rights (SDR) according to the IMF’s Quarterly Finances.

This represents 17% of the total borrowings from the IMF, as reported in the IMF's latest financial statements and quarterly reports ending October 31, 2024.

The concessional lending facility offers low-interest rates, with the Poverty Reduction and Growth Trust (PRGT) providing financial support to low-income countries on favorable terms within one to three years.

Ghana's debt to the International Monetary Fund (IMF) has reached $2.914 billion, accounting for 17% of the total African borrowings from the IMF as of October 31, 2024. This positions Ghana as the second most indebted African country to the IMF, surpassed only by the Democratic Republic of Congo with a debt of $2.256 billion SDRs. Zambia follows closely in third place with an outstanding loan of $1.272 billion.

Ghana's economic struggles led to a $3 billion bailout request from the IMF in January 2023. So far, the country has received $1.92 billion under the Economic Credit Facility program. These loans are classified as concessional lending, offering favorable terms such as low-interest rates and extended repayment periods to support economic development and poverty reduction in low-income countries.

IMF Debt Rankings:

- Ethiopia: 2.256 billion SDR
- Ghana: 2.242 billion SDR
- Zambia: 1.272 billion SDR
- Kenya and Ivory Coast follow in fourth and fifth positions, respectively.