IMF Agrees $3 Billion Bailout for Ghana to Stabilize Economy, Manage Debt
- Program aims to make Ghana’s debt more sustainable: IMF
- Investor concern about Ghana’s debt led to cedi, bond selloff
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Ghana secured a staff-level agreement with the International Monetary Fund for a $3 billion bailout, a key step in the West African nation’s plans to restructure its unsustainable debt.
The accord, which still requires IMF board approval, enables the government to address its precarious public finances and support the cedi — the world’s worst-performing currency tracked by Bloomberg this year. Investor concerns about ballooning government debt — forecast to exceed the size of its economy this year — led to a selloff of government bonds that effectively locked the country out of global capital markets.