IMF sending team to Ghana to start aid talks

WASHINGTON — The International Monetary Fund (IMF) will send a team to Ghana this week to begin talks on a possible loan programme for the West African country, the fund said on Tuesday.

The country’s President Nana Akufo-Addo had previously rejected calls to seek financial assistance from the IMF, but last week authorised the step as the country faces soaring inflation.

"On the basis of a request from the Ghanaian authorities, an IMF staff team will in the coming days kick-start discussions on a possible programme to support Ghana's homegrown economic policies," Carlo Sdralevich, IMF mission chief for Ghana, said in a statement.

"We are at an early stage in the process, given that detailed discussions are yet to take place," Sdralevich said.

He will lead the International Monetary Fund staff team visit to Accra July 6-13.

The announcement came followed two days of protests in the capital over the rising cost of food and fuel, after the country was hit with inflation of more than 27 per cent in May — the highest in almost two decades.

Brawls have erupted in the hung parliament as the government tries to push tough policies it believes could salvage the economy.

Data from Ghana's central bank indicates the country's debt-to-GDP ratio was 80.1 per cent at the end of last year, and fuel prices have shot up as a result of Russia's invasion of Ukraine.

"The IMF stands ready to assist Ghana to restore macroeconomic stability, safeguard debt sustainability, and promote inclusive and sustainable growth, and address the impact of the war in Ukraine and the lingering pandemic," said Sdralevich.