According to Bloomberg, the funding which will come in the form of balance of payment support will be spread within three years.
A billion dollars is expected to come in immediately after the fund approves an economic programme by the government.
“The amount is double what the country was considering a month ago as it tries to shore up its finances and gain access to the global markets. The funding would be provided over three years, the people said, asking not to be identified because the talks are still in progress and public announcements have not been made,” it noted.
The government began discussions with the International Monetary Fund in July 2022, following a directive by President Akufo-Addo to the Finance Minister to engage with the institution.
The engagement with the IMF, will seek to provide balance of payment support as part of a broader effort to quicken Ghana’s build back in the face of challenges induced by the COVID-19 pandemic and, recently, the Russia Ukraine crises.
The move comes as Ghana’s economy is facing a number of challenges including a worsening public debt situation which has risen to about GH¢393.4 billion or 78.3 per cent of GDP as at June 2022 , rising inflation which has risen to about 29.8 per cent in June this year, high fuel prices, cedi depreciation among others.
The struggling economy has impacted negatively on the local currency which has almost hit GH¢9 to a dollar.
Also, International Ratings agency, S&P on Friday, August 5, 2022, revised Ghana’s rating from B-/B to CCC+/C.
It also reviewed the country’s economic outlook to negative, reflecting “Ghana’s limited commercial financing options, and constrained external and fiscal buffers.”