Ghana has started to hold formal talks with the IMF on a support package, prompted by massive protests by the hundreds in light of growing economic hardship. Prior to this, Ghana had refused to go to the IMF for help despite being handicapped by the pandemic, having struggled with surging inflation and a depreciating currency. According to Reuters, analysts were sounding warning bells of a debt crisis. However, with the IMF support package at hand, Reuters added that it should help with the African sovereign’s overall balance of payments deficit of $934.5mn as of Q1 2022, which is $504.6mn more than the same period last year. An IMF spokesperson told Reuters, “The IMF stands ready to assist Ghana to restore macroeconomics stability; safeguard debt sustainability; promote inclusive and sustainable growth; and address the impact of the war in Ukraine and the lingering pandemic.” In light of the positive development, Ghana’s bonds across all maturities rallied sharply on Friday, as seen in the chart below.

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