Source: newsthemegh.com
An important step forward in Ghana’s efforts to recover economically is the confirmation by the World Bank of the transfer of a $300 million facility to fund various projects in the country.
The payment was made to the Bank of Ghana’s account after Ghana completed all required procedures, including getting approval from the Parliament and Cabinet.
According to data supplied by the Bank of Ghana, the transfer, which was completed on March 27, 2024, is anticipated to strengthen Ghana’s international reserves, which were valued at over $6 billion as of February 2024.
By year’s end, the government hopes to receive about $1.2 billion from development partners, according to Finance Minister Mohammed Amin Adam.
The payment is intended to accelerate the infrastructure projects that were listed in the 2023 Budget but were put on hold because of earlier financing shortages.
It is also expected to stabilize the Ghanaian cedi and let the world market know that the central bank is more capable of supporting the national currency.
The first of three installments, $300 million Development Policy Financing, focuses on Ghana’s disaster response and resilience.
Its goals are to promote social and climate resilience, restore fiscal sustainability, maintain the stability of the financial system, encourage private sector development, and improve the financial discipline of the energy sector.
This payment is a portion of the funding Ghana obtained as part of the IMF program, which was started in May 2023 and has already given Ghana $1.2 billion.
Following an agreement in principle by the Official Creditors’ Committee under the G20 Common Framework on debt restructuring for Ghana, the World Bank approved this facility in January 2024, marking a key step in restoring debt sustainability.