Ghana Nears $1.15 Billion Funding from IMF and World Bank Amid Confidence in Debt Restructuring

Ghana is set to secure a $1.15 billion funding package from the International Monetary Fund (IMF) and the World Bank by the end of February. Finance Minister Ken Ofori-Atta is optimistic about reaching an agreement with official creditors on the terms of a debt restructuring, with a meeting scheduled for January 8. Once the agreement is reached, the IMF executive board can assess Ghana’s performance under the program initiated in May, allowing for the approval of a $600 million disbursement, the second part of its $3 billion bailout. The board is expected to convene on January 18, paving the way for two World Bank disbursements totaling $550 million. The disbursement for budgetary support is anticipated by the end of this month, while the contribution to the Financial Stability Fund is expected by the end of February. In June, Ghana reached a deal with banks to restructure $1.36 billion in locally issued U.S. dollar bonds and cocoa bills to meet an IMF deadline and prioritize discussions with foreign creditors. In September 2023, Ghana filed for bankruptcy after failing to pay billions of dollars owed to international creditors. The country has halted payments on the majority of its $28.4 billion external debt.

Ghana Nears $1.15 Billion Funding from IMF and World Bank Amid Confidence in Debt Restructuring