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Ghana to make U-turn and ask IMF for help as economic conditions worsen

Ghana’s president, Nana Addo Dankwa Akufo-Addo, has authorized Finance Minister, Ken Ofori-Atta to commence formal engagements with the International Monetary Fund (IMF), to support the country’s economy.

A statement issued by the country’s information ministry said the order follows a telephone conversation between President Akufo-Addo and the IMF Managing Director, Miss Kristalina Georgieva.

Until now, Ghana, the continent’s second-biggest gold producer, had refused to seek IMF support to rescue an economy crippled by the pandemic, rampant inflation and a depreciating currency, despite analysts warning it is close to a debt crisis.

Ghana has been struggling to stabilize debt that has grown to 78% of gross domestic product at the end of March from 62.5% five years ago, because of a sweeping clean-up of the banking sector, energy-sector loans and the impact of the coronavirus pandemic.

July 6, 2022

References:

• https://www.bloomberg.com/news/articles/2022-07-01/ghana-starting-engagement-with-imf-for-economic-program
• https://www.aljazeera.com/news/2022/7/1/crisis-hit-ghana-changes-its-mind-and-turns-to-imf-for-help
• https://www.africanews.com/2022/07/01/ghana-back-to-imf-as-economic-conditions-worsen//
• https://africa.businessinsider.com/local/markets/ghana-seeks-dollar15-billion-from-imf-after-backtracking-on-decision-not-to-seek-help/31d89sv
• https://qz.com/africa/2188411/ghana-seeks-imf-bailout-as-inflation-spikes/
• https://www.ghanabusinessnews.com/2022/07/01/ghana-finally-goes-to-imf-after-government-obstinacy-crumbles/
• https://www.ghanaweb.com/GhanaHomePage/business/IMF-bailout-Akufo-Addo-has-failed-as-President-Kennedy-Agyapong-1584002