Bank of Ghana finally receives $300 million World Bank facility for 2024 projects
The Bank of Ghana has received the $300 million World Bank facility earmarked for supporting projects in 2024 after fulfilling all necessary conditions, including obtaining approvals from Cabinet and Parliament.
The transfer took place on March 27, 2024. The Bank of Ghana is now tasked with converting the dollars into cedi equivalents for distribution to various government agencies and ministries.
This injection of funds, particularly the foreign exchange component, is expected to bolster the international reserves of the Bank of Ghana, which stood at over $6 billion as of February 2024 according to data from the Bank.
Finance Minister Dr. Mohammed Amin Adam recently stated that the government anticipates receiving about $1.2 billion from development partners by year-end.
This disbursement is crucial for advancing infrastructure projects outlined in the 2023 Budget that faced delays due to the late receipt of support from donors.
The World Bank’s approval of this facility in January 2024 came after Ghana reached an agreement with its bilateral creditors under the G20 Common Framework for debt restructuring.
This agreement aligns with the Joint World Bank-IMF Debt Sustainability Framework, marking a significant step towards restoring debt sustainability.
The $300 million Development Policy Financing, the first in a series of three, aims to address various aspects including restoring fiscal sustainability, supporting financial sector stability and private sector development, improving energy sector financial discipline, and enhancing social and climate resilience.
It is part of the broader financial support Ghana secured through the IMF programme in May 2023, with the IMF having already disbursed $1.2 billion to Ghana under the programme.
The World Bank views this financing as a critical contribution to Ghana’s economic recovery and resilient, inclusive growth, aligning with the country’s goals for sustainable development and financial stability.
Source- myjoyonline
