IMF discusses Ghana aid package

The Board of the International Monetary Fund (IMF) will gather today in Washington D.C. to discuss its debt-relief package to Ghana.

The West African state is in the midst of one of the worst economic crises in its history, which is exacerbated by a hefty external debt and high living costs. The dire living conditions have led to mass protests nationwide, pushing Accra to seek outside help. Last week, Ghana’s Finance Ministry announced they reached a deal with official creditors paving the way for a much-needed IMF financing of USD $600 million under its USD $3 billion bailout program.

The IMF board is highly-likely to approve the debt-relief package. This is mainly because Accra’s deal with creditors signals the state’s determination to improve its finances. In addition to the IMF debt-relief package, Accra also aims to increase gold and cocoa production to cut down roughly USD $10 billion of external debt. Sll things considered, Ghana’s dire economic situation appears likely to improve considerably during the short-to medium-term. This will likely drive additional debt-stricken African countries such as Chad, Ethiopia and Zambia to follow a similar suit and make debt relief requests.