Ghana has emerged as the world’s top borrower under the International Monetary Fund’s (IMF) Poverty Reduction and Growth Trust (PRGT).
The PRGT is designed to assist low-income countries facing potential balance of payments difficulties over a one to three-year period.
The IMF’s Quarterly Finance Report for July 2023 reveals that Ghana holds the highest outstanding loan within this Trust, constituting nearly 10 percent of the total loans owed by countries, which amount to 17,684 million Special Drawing Rights (SDR). This represents a 35 percent increase from the 1,246 million SDR recorded as of April 30, 2023.
The Democratic Republic of the Congo and Kenya rank second and third under the PRGT, with DR Congo owing 1,295 million SDR (7%) and Kenya having a debt of 1,078 million SDR (6%).
Sudan and Uganda follow, with outstanding balances of 992 million SDR (6%) and 903 million SDR (5%), respectively.
The remaining 66 percent of the loans owed to the IMF under the Poverty Reduction Fund are distributed among other countries. Ghana has repaid 8 million SDR.
In terms of regional distribution, Africa holds the majority of these outstanding poverty loans, accounting for 75 percent, while Europe accounts for only one percent.
Ghana is currently operating under a three-year, $3 billion IMF support program, which has led to the restructuring of domestic and external debts due to unsustainable levels.
