Economy

IMF hikes interest rate on SDRs

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Member countries of the International Monetary Fund will pay more in terms of interest rate for loans contracted from the fund.

This is because the IMF has increased its lending rate on its Special Drawing Rights (SDR) from 0.89 per cent to 2.99 per cent, representing an increase of 2.1 percentage points.

The new rate which took effect on January 6, 2023, means that Ghana would have to pay more should the Bretton woods institution approve the US$ 3 billion programme.

Ghana is currently seeking an IMF-support programme to the tune of $3.0 billion that will span a period of about three years to revive its struggling economy.

This means the nation will pay an interest of 2.99% on the $3.0 billion over a period that will be determined by the terms and conditions of the Fund.

Already, the country is already seeking for debt cancellation via the G20 Common Framework programme, despite only poor nations eligible for it.

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