IMF increases lending rate on SDR

Member countries of the International Monetary Fund (IMF) 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% to 2.99%, representing an increase of 2.1 percentage points.

The new rate which took effect on 6 January 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 US$3 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 US$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.