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IMF sees ‘good progress’ in $3 bln financing assurances for Ghana as inflation declines to 41% in April

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The International Monetary Fund (IMF) said on Thursday it has seen “good progress” in delivering bilateral financing assurances to Ghana that are needed for the IMF executive board to consider a three-year, $3 billion loan program for the West African country.

IMF spokesperson Julie Kozack told a news briefing that the Fund is hopeful that the IMF executive board can quickly consider the Ghana program once enough official bilateral creditor assurances have been secured. The package was agreed at the staff level in December.

“We have seen strong progress toward creditors delivering on these financing assurances and we’re hopeful that they can be delivered very rapidly,” Kozack said.

Last month, Ghana’s finance minister, Ken Ofori-Atta said during a presentation that he expects IMF board approval for the loan in May.

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Meanwhile, the Ghana Statistical Service (GSS) announced Wednesday that the country’s inflation rate declined to 41.2 percent year on year in April, the fourth consecutive decline since reaching a record high of 54.1 percent last December.

“We continue to see the dominance of food and non-alcoholic beverages in contributing to the overall inflation rate of 41.2 percent,” said Samuel Annim, the government statistician at the GSS, during the regular monthly briefing.

“Compared with March, food inflation declined 2.1 percentage points to 48.7 percent in April, while non-food inflation declined 5.2 percentage points to 35.4 percent.”

Meanwhile, inflation for locally produced and imported items stood at 38.2 percent and 43.1 percent, respectively.

Despite the fourth consecutive decline since January, Ghana’s inflation rate is still far above the central bank’s medium-term target band of 8 percent to 10 percent.

Ghana has, since 2021, been grappling with its worst economic performance in decades. Currently, the government is in negotiations with the International Monetary Fund, hoping to secure a 3-billion-U.S.-dollar loan to revive its economy. Enditem

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