The United States of America (USA) is urging the government of Ghana to step up its negotiations with the International Monetary Fund (IMF).

We support Ghana’s application for an economic bailout with the IMF.

The United States (US) ambassador to Ghana, Madam Virginia Palmer, said the US government is in support of Ghana’s decision to seek a bailout from the IMF.

The US ambassador gave a thump up for the country’s decision to seek an economic bailout from the IMF in an interview on Accra-based Joy FM on Saturday, December 10, 2022.

According to her, as a member of the board of the IMF, she will support the government’s efforts in securing a deal with the IMF.

She urged the government to step up its negotiations with the IMF

The International Monetary Fund (IMF) and Ghana are expected to reach a staff-level agreement on a loan deal by Tuesday at the latest, three sources with knowledge of the ongoing talks have said.

The IMF did not immediately respond to a request for comment. A spokesperson for Ghana’s finance ministry said they cannot comment beyond that the negotiations were ongoing.

Two sources said that the IMF program was expected to be an extended credit facility, which provides financial assistance to countries.

One of those sources and a third source said that major hurdles in the negotiations were overcome this week which sped up the process.

Ghana turned to the IMF for help in July, and an IMF team is currently in the country until Tuesday.

Finance Minister Kenneth Ofori-Atta has said he is hoping for a relief package of up to $3 billion, possibly over a three-year period, as the West African country faces its worst economic crisis in a generation.

The cocoa, gold, and oil-producing West African nation has said it needs the deal by the end of the year.

The government has begun restructuring its debt this week by rolling out a plan to swap $10.5 billion in local bonds with new ones, but has not yet announced plans for a foreign debt restructuring.

One source close to the matter said that the conditions for an external debt restructuring were the final hurdle and that an agreement was expected to be reached on Friday.