The International Monetary Fund (IMF), today April 3, 2015, approved the $918 million three-year Extended Credit Facility (ECF) for Ghana, but classified the country as “high risk of debt distress” under a new debt sustainability analyses (DSA).
On February 26, 2015, the IMF announced that it reached a staff-level agreement with Ghana for a three-year Extended Credit Facility (ECF) of $940 million, which intended to provide financing, policy direction and monitoring and addresses Ghana’s key credit weakness through prioritising fiscal consolidation, raising revenue and improving Central Bank credibility.
“Countries classified as high risk are allowed to borrow on non-concessionnal terms only under exceptional circumstances. This will be one of the first tests of the implementation of the new debt limits policy,” the Fund says.
Sources say France and the UK raised two issues: transparency (they have been approached by some NGOs) and the non-concessional borrowing (in regard to the new debt limits policy).
By Emmanuel K. Dogbevi