Ghana expects IMF loan approval in Q2 2023, finance minister says

ACCRA (Reuters) – Ghana expects the International Monetary Funds board to approve a $3 billion loan by the end of the second quarter of 2023, Finance Minister Ken Ofori-Atta said in a presentation on Thursday.

He added that official credit or financial assurances are expected by May and that the countrys domestic debt exchange programme would yield 38 billion cedis ($3.3 billion) of debt service savings in 2023.

Ghana must restructure its debt in order for the IMF board to approve the staff-level support package.

Ofori-Atta said $20 billion were eligible for external debt restructuring, 66% of which is under the form of external debt stock. Another $5.4 billion in official creditor debt will also be restructured.

The government also aims to bring rampant inflation down to 8% in the medium term and is targeting real GDP growth of 5% in over the same period.

A memorandum of understanding with official creditors and an agreement in principle on Eurobond restructuring is expected by July, the minister said.

(Reporting by Anait Miridzhanian; Writing by Sofia Christensen; Editing by Estelle Shirbon)