The International Monetary Fund (IMF) has set conditions that Ghana must meet before they will reconsider or change the country's classification as being in high debt distressIn a released Staff Report, the IMF noted that Ghana still has the tag due to the near-term breach of the Debt Sustainability Analysis(DSA) Threshold.Thus, Ghana will reach a Moderate Risk of debt distress by 2028, when all the targets have been met.

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“In the baseline, Ghana is at high risk of debt distress due to near-term breaches of the DSA thresholds but is expected to reach moderate risk of debt distress in the medium term with all DSA sustainability targets met by 2028. Ghana’s exceptional financing gap is closed with international reserves reaching 3 months of imports at the end of the program.

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”Ghana is expected to lower its total debt compared to the country's economy and reduce the amount it spends on paying foreign debts by 2028. This will involve improving how the government collects money and spends it.The IMF also wants Ghana to strengthen support systems for its people, make changes to help the country better manage its currency, build a more varied economy, and encourage stronger economic growth.

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The IMF's announcement comes as the government says it has nearly completed restructuring the country's debts, with about 90% of the process done.A recent report from the Bank of Ghana shows that Ghana’s total debt has slightly reduced due to progress in restructuring foreign debts. The data reveals that Ghana’s debt dropped by more than 46 billion cedis from September to reach 761 billion cedis by the end of October 2024.

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