IMF, Ghana likely to reach loan deal by Tuesday

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IMF, Ghana likely to reach loan deal by Tuesday

Three sources with knowledge of the ongoing talks said that the International Monetary Fund IMF and Ghana are expected to reach a staff-level agreement on a loan deal by Tuesday.

The International Monetary Fund did not respond to a request for comment. A spokesman for the finance ministry of Ghana said they couldn't comment beyond that the negotiations were ongoing.

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

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

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

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

The West African nation needs the deal by the end of the year, because of its cocoa, gold, and oil-producing West African nation.

The government has begun restructured 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.