Ghana’s debt level in 4 decades points at $1billion; within a day it doubles –IMF..

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Ghana authorities have doubled country’s debt level within a day after requesting $1billion from International Monetary Fund -IMF, the highest ever during  about 4 decades’ arrangements with the Fund.

On April 13, Ghana borrowed the equivalent of the amount it had owed the Bretton Woods institution since 1984. Ghana’s outstanding debt is worth 773.63 million SDR –Special Drawing Rights (about $1.059billion), which is a cumulative amount for the past 35 years from December 31, 1984 to March 29, 2019.

The amount has doubled on April 13, 2020 while country authorities made the request for disbursement under the Rapid Credit Facility (RCF) which is worth 738 million SDR (about $1.010billion) at a 0% interest rate intended for an appropriate response to contain the coronavirus pandemic, said IMF released files that Ghnewz has read a copy.

Following Ghana authorities’ decision, country’s debt level has mounted up at 1,511,626,000 SDR (about $2.069billion).

Ghana IMF debt decreased significantly in the 1990s and then in 2000s.

Ghana has recorded two series of consistent debt decrease during the past 35 years of arrangements with IMF, in 1990s under Rawlings administration and in 2000s under President John Kufuor.

In 1992 Ghana’s debt level has commenced a gradual decline under President Jerry John Rawlings’ administration which has been consistent from 1984 to 2000 by carrying out a significant decrease of about 50%.

In 1994 the debt level has reduced of 45,345,108 SDR (about $62.075million) which has been 8.6% decline from 1984.

During 8 consecutive years, starting from 1992, Ghana’s outstanding debt has substantially lessened to reach 224,497,500 SDR (about $307.328million) in 2000, from 525,047,893 SDR (about $ 718.769million) initially in 1984, said an IMF statement.

In 2001, a slow and moderate debt increase was noticed when President John Kufuor took office followed by a 3 years consecutive drop ever recorded in Ghana since about 4 decades.

Estimated at 225,662,500 SDR (about $308.922million) in 2001, debt level has reached a new increase of 304,915,000 SDR (about $417.416million) in 2003.

But starting from 2006, the country has recorded its lowest level of debt ever in the past 35 years that reached $144.356million in 2006, 2007 and 2008.

Ghana has up to now recorded a total of 16 arrangements with IMF since September 20, 1957 date of membership.

 

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