The Poverty Reduction and Growth Trust (PRGT) at the International Monetary Fund (IMF) has placed Ghana as the country with the highest outstanding loan across the globe.
The Poverty Trust is one of the funds countries can draw credit from to support the potential balance of payment problems of low-income countries between a period of one to three years.
Meanwhile, the International Monetary Fund’s Quarterly Finance Report for July-ending 2023 has placed Ghana as the highly indebted country under that Trust broadly known as concessional loan and debt relief trusts.
With the 35 per cent increase of the Special Drawing Rights (SDR) from 1.246 billion to 1.689 billion as of April 30, 2023, Ghana accounts for almost 10 per cent of the 17,684 million SDR in total loans owed by countries under the Trust.
The Democratic Republic of Congo comes after Ghana, and then followed by Kenya under the same Poverty Trust.
READ ALSO: Ghana’s current fiscal position a grand conspiracy to collapse the Bank of Ghana – Minority
DR Congo owes the IMF 1,295 million SDR (7%) whereas Kenya is indebted to the tune of 1,078 SDR. million (6%).
Sudan and Uganda, whose exposure to the Trust stands at 992 million SDR (6%) and 903 million SDR (5 percent), respectively, placed fourth and fifth.
The rest of the countries owed the remaining 11,727 million SDR (66 %) to the IMF under the Poverty Reduction Fund.
Ghana has repaid 8 million in SDR. 1 SDR at IMF under the Poverty Trust equals US$1.34294.
In terms of regional breakdown of the outstanding poverty loans, Africa held a chunk amounting to 75 per cent.
The least regional holder was Europe, which accounted for only one per cent.
Ghana is currently under a US$ 3 billion three-year IMF support programme which has led to the restructuring of domestic and external debts at unsustainable levels.
The Finance Ministry after the first rollout of the Domestic Debt Exchange Programme (DDEP) has commenced a second phase which bondholders, just like the first phase, are kicking against.
READ ALSO: BoG defends GH¢60bn loss; blames government’s debt exchange programme
