Browsing: IMF Approves Loan

Ghana’s Business Activity
  • The IMF deal caused the cedi to appreciate, relieving price constraints and potentially mitigating a downturn in commercial activity
  • S&P Global’s Purchasing Managers’ Index, which gauges the health of the private sector, increased somewhat from 44.9 in November 2022 to 47 in December 2022
  • The cedi gained 41% versus the dollar last month and saw a reduction in projected losses for 2022 to 39%, which lowered inflation and gave businesses some reprieve

A staff-level finance agreement with the IMF caused the cedi to appreciate, relieving price constraints that have afflicted the industry for more than a year and potentially mitigating a downturn in commercial activity in Ghana.

S&P Global’s Purchasing Managers’ Index, which gauges the health of the private sector, increased somewhat from 44.9 in November 2022 to 47 in December 2022.

However, it remained below the 50-point threshold that distinguishes expansion from contraction for the 11th consecutive month.

According …

  • The International Monetary Fund (IMF) Executive Board has authorised a Sh55.1 billion (US$447.39 million) loan to Kenya
  • Kenya has received a total of around $US1.655 billion (Sh203.84 billion) in payments under the EFF/ECF accords
  • IMF stated that Kenya’s economy is solid and expects it to expand by 5.3% 

The International Monetary Fund (IMF) Executive Board has authorised a Sh55.1 billion (US$447.39 million) loan to Kenya for budgetary support.

This follows the fourth evaluation of the 38-month, $US2.34 billion (Sh288 billion) Extended Credit Facility (ECF) and Extended Fund Facility (EFF) agreements with Kenya.

Kenya has now received $US1.655 billion (Sh203.84 billion) in payments under the EFF/ECF accords.

The facility, approved in April 2021, was aimed at helping Kenya manage its debt risks, respond to the Covid-19 pandemic and other global shocks, improve governance, and implement more extensive economic reforms.

IMF confidence in Kenya’s economy

Despite a challenging global economy, the IMF