Ghana Ranks Second in Global IMF Concessional Lending Debt
Ghana has emerged as the world’s second most indebted nation under the International Monetary Fund’s (IMF) Concessional Lending and Debt Relief Trust. According to the IMF’s latest financial statements as of October 31, 2024, Ghana holds an outstanding exposure of 2.242 billion Special Drawing Rights (SDR), accounting for 17% of the total borrowings from the Fund.
Ethiopia tops the list with 2.256 billion SDR, while Zambia follows Ghana in third place with 1.272 billion SDR. Kenya and Ivory Coast round out the top five. Africa dominates the regional breakdown, holding 78% of the outstanding concessional loans, while Europe accounts for just 1%.
The IMF’s concessional loans, offered at low interest rates through the Poverty Reduction and Growth Trust (PRGT), aim to support low-income countries with financial assistance for one to three years. Ghana turned to the IMF in 2023 amidst severe financial challenges, securing a $3 billion bailout under the Extended Credit Facility (ECF) to stabilize its economy.
So far, Ghana has received $1.92 billion of the approved bailout, with the remaining tranches expected in the coming months. Alongside Zambia, Ghana has defaulted on its debt obligations, further emphasizing the critical role of IMF support in sustaining its economic recovery.