IMF ranks Ghana first in Africa with largest outstanding debt owed

WASHINGTON, The International Monetary Fund (IMF) has ranked Ghana number one in Africa with the largest outstanding debt owed to the Bretton Woods institution.


The Fund in its latest Quarterly Finances report ending July 2022 showed that Ghana’s outstanding debt obligations are estimated at 1.31 billion in Special Drawing Rights which is equivalent to about $1.69 billion.


The report further explained that Ghana’s outstanding loans represent 9 percent of the total sum for African countries which are indebted to the Fund and yet to honor their loan obligations.


It added that the percentage is equivalent to 178 percent of its share of monies borrowed from the IMF.


The Quarterly Finances report, however, excluded COVID-19-related and economic support received by Ghana which amounts to more than $1.2 billion from the Fund.


Ghana’s loan exposure has since been classified by the IMF as concessional lending – which comes with low-interest financing.


Meanwhile, Ghana’s external debt component was pegged at $28.1 billion as of June 2022, with a large portion of the loans used for commercial purposes.


The IMF rankings have also placed Sudan and the Democratic Republic of Congo in 2nd and 3rd in Africa with the largest outstanding loans.


The two countries have Special Drawing Rights of 992 million and 990 million respectively.