Ghana placed 4th in Africa with the highest outstanding debt to the International Monetary Fund according to the Fund’s 2024 Quarterly Financial Statement. The country’s total indebtedness to the IMF stood at 2.275 billion Special Drawing Rights, equivalent to 3.068 billion dollars.
Egypt came first in Africa, owing the IMF SDR 10.050 billion. It was followed by Angola and Kenya in second and third which were indebted to the Fund to the tune of SDR 2.989 billion and SDR 2.566 billion.
Meanwhile, Nigeria and Morocco dropped out of the top ten, making way for Cameroon and Ethiopia.
The IMF loans provided temporary relief to member countries, while also leading to a potentially troublesome debt.
A high level of IMF borrowing increases a country’s overall debt, a situation that requires prudent fiscal management.
The loans often come with conditions, placing further constraints on the government’s financial flexibility.
SOURCE: Myjoyonline
