Ghana expecting US$2 billion from Korea to boost economy, says Stephen Amoah

The deputy finance minister said the concessionary loan from South Korea together with other financial inflows from the Bretton Woods Institutions will help stabilise the cedi

Stephen Amoah, a deputy finance minister has said Ghana is expecting a US$2 billion concessionary loan from South Korea to support the country’s economic transformation.

Amoah said the Korean concessionary loan together with the US$360 million from the International Monetary Fund (IMF) and an additional US$300 million from the World Bank are expected to boost the economy and stabilise the depreciating cedi.

Speaking with Benjamin Offei-Addo on the Asaase Breakfast Show on Thursday (13 June), the deputy finance minister said, “… We are also expecting US$2 billion from Korea… My minister did a very great job when we went to meet them. We are even negotiating for more…”

“Korea’s money is the best concessionary loan that I’m sure this country will ever have because the interest is almost zero and we will have a moratorium of about 30 years. It is almost free,” he said.

“They are not just doing this because it’s Ghana, they are doing this because they have done a lot of work on Ghana; they were impressed with how we’ve been able to manage the post-COVID situation,” he added.

Deal on MoU with official creditors

Ghana has reached an agreement on a memorandum of understanding (MoU) with its official creditor committee (OCC) regarding the debt treatment agreed upon in January 2024, the Finance Ministry has announced in a statement.

Ghana’s OCC is co-chaired by China and France, both of which played important roles in this achievement.

The MoU formalises the agreement in principle reached with official creditors in January and marks a crucial step towards Ghana restoring long-term debt sustainability.

According to the statement, the financial terms of the agreement remain unchanged and it provides significant debt service relief during the Fund-supported program period, allowing financial resources to be directed towards critical areas such as infrastructure, healthcare and education.

The formalisation of the OCC agreement is expected to pave the way for the approval by the IMF Executive Board of the second review of the Fund-supported Post COVID-19 Programme for Economic Growth (PC-PEG), allowing the next tranche of IMF financing of US$360 million to be disbursed.

The IMF board’s approval should also trigger more financial assistance from our development partners, particularly the World Bank.

The agreement will also bolster the current and ongoing discussions with private creditors, with whom Ghana remains committed to finding a comparable agreement as early as possible.

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