Since private sector funding has dried up, President Nana Akufo-Addo has asked the World Bank and the International Monetary Fund (IMF) for concessionary loans to help stabilise the economy.
This is a loan with better terms than the borrower would be able to get in the market. The concessionary terms may include a reduced interest rate and/or deferred repayments.
In a meeting with the Director General of the World Trade Organisation, Ghana’s President Akufo-Addo expressed that the country’s current economic situation makes it challenging to access the financial market for borrowing.
President Nana Akufo-Addo begged the institutions of Bretton Woods to take action to help faltering economies.
In the latest news today, the Director General of the World Trade Organisation (WTO), Dr. Ngozi Okonjo-Iweala, stated that countries with faltering economies, particularly those in Africa, need to reevaluate their strategies.
“But we are also urging at the WTO that we do something we call re-globalisation, that we use this opportunity, if we want to build resilience in certain global supply chains to look at others, other developing countries as possible places where manufacturing can also take place.”
She urged the country to talk to several of these global supply chains to see if they can also consider Ghana as a possible destination, “I think these are some of the things that Ghana should consider, Ghana is a much loved country and I think that your ability to attract investment should be something very important for you to talk to several of these global supply chains to see if they can also consider Ghana as a possible destination.”
President Nana Akufo-Addo recently passed the three new taxes, which are the Growth and Sustainability Levy Bill, the Excise Duty Amendment Bill 2022, and the Income Tax Amendment Bill, on April 17, 2023, with the aim of bringing in GHS4 billion annually for the nation and approval by the IMF board in order to obtain the Fund’s US$3 billion extended loan line to rescue the economy.
How Much Is The IMF Bailout To Ghana
The International Monetary Fund (IMF) agreed to lend $3 billion to Ghana in an effort to stabilise the country’s economy and support its debt restructuring plans.
