Ghanaian lawmakers have approved the government’s plan to take out a $750mn loan from African Export-Import Bank to supplement their 2022 budget. This is the first part of the $1bn in loans that the government is looking to obtain this month. The second part worth $250mn is expected to be syndicated by other international banks and the proposal is still under review by lawmakers. With the additional funds, the ruling party can stabilize the country’s finances by reducing domestic borrowing and bolstering the local currency, which plunged 25.6% YTD. Bloomberg notes that the loan facility provides critical funding for the African sovereign given that it lost access to international capital markets earlier this year. Ghana is also seeking to receive an additional $1.5bn from the IMF, which would give them more financial breathing room to press on with budget projects and enhance local policies. Ghana is currently rated B3/B-/B by the three major rating agencies.

Ghana’s 7.875% 2023s are trading 0.4 points lower at 91 cents to the dollar, yielding 17.7%.

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