Ghana has been identified as the second most indebted African nation to the International Monetary Fund (IMF) in terms of concessional loans. According to the IMF’s Quarterly Finances, the country’s outstanding indebtedness to the institution reached US$2.914 billion as of October 31, 2024, representing 17% of total African borrowings from the IMF.
Only the Democratic Republic of Congo, with an indebtedness of US$2.256 billion surpassed Ghana. Zambia followed in third place with US$1.272 billion in outstanding loans.
This revelation comes as Ghana grapples with a severe economic crisis that led it to seek a US$3 billion bailout package from the IMF in January 2023. The country has so far received US$1.92 billion under the Economic Credit Facility program.
Concessional lending refers to loans provided by the IMF on favorable terms, such as low- interest rates and extended repayment periods, to low-income countries. These loans are designed to support economic development and poverty reduction.
Both Ghana and Zambia, facing significant economic challenges, have defaulted on their commercial loans obligations, necessitating assistance from the IMF.
