Last month, the West African country was debating paying half that sum.
Once an agreement on a program is reached, the government will be considering obtaining $3 billion over three years from the International Monetary Fund (IMF).
Bloomberg, an international news agency, claims this.
According to the portal’s website, the latest loan request was for twice as much money as the government’s initial goal of $1.5 billion.
“Ghana’s government is in talks over a loan of about $3 billion from the International Monetary Fund, according to two people familiar with the matter.
“The amount is double what the West African nation was considering a month ago as it tries to shore up its finances and win back access to 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. Calls to a finance ministry spokeswoman didn’t connect,” Bloomberg added.
According to an IMF email answer to the news organization, it was too early to make any comments on the matter and that the Executive Board of the Bretton Woods institution ultimately had the final say on the program for Ghana.
“Since negotiations for the program are starting now, it’s too early to comment on the final form the program will take.
“The Extended Credit Facility for low-income countries is the Fund’s main tool for medium-term support for countries facing protracted balance of payments problems, similar to Ghana’s. The duration of such an arrangement is between three to four years, and extendable to five years. The final program is ultimately decided by the IMF’s Executive Board,” an IMF spokeswoman told Bloomberg.
Recall that on July 1, the administration reversed course on its steadfast stance against asking the IMF for assistance during a slump in the economy.
On July 6, a team from the IMF entered the nation and began working with Ghanaian authorities on a plan to restore macroeconomic stability and protect debt sustainability, among other things.
The government has consistently insisted that it will reach a favorable agreement with the IMF.
Standard and Poor’s (S&P) Global Ratings, an American credit rating organization, downgraded Ghana’s foreign and local currency sovereign ratings to CCC+/C from B-/B on Friday, August 5. This moved Ghana’s debt into more speculative terrain.
Marketwatch.com said that S&P’s assessment of Ghana is still negative, “indicating Ghana’s limited commercial borrowing options, and restrictive external and fiscal buffers.”
The “Covid-19 pandemic and the crisis in Russia have increased Ghana’s fiscal and external imbalances,” according to S&P, one of the “Big Three” credit-rating agencies, along with Moody’s Investors Service and Fitch Ratings.
“There is also demand for foreign currency that has been driven higher by several factors, including nonresident outflows from domestic government bond markets, dividend payments to foreign investors and higher costs for refined petroleum products,” the report added.
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