IMF approves release of $1 billion to Ghana to respond to coronavirus economic turmoil Updated for 2021

82,096FansLike
2,966FollowersFollow
2,700SubscribersSubscribe
82,096FansLike
3,122FollowersFollow
2,700SubscribersSubscribe

Updated: March 4, 2021

The International Monetary Fund (IMF) has approved the released of $1 billion to Ghana to respond to coronavirus economic turbulence in the West African country. The $1 billion would be drawn under the Rapid Credit Facility.

The disbursement will help address the urgent fiscal and balance of payments needs that Ghana is facing, improve confidence, and catalyze support from other development partners, IMF said.

[read_more id="2" more="Read full article" less="Read less"]

“The COVID-19 pandemic is impacting Ghana severely. Growth is projected to slow down, financial conditions have tightened, and the exchange rate is under pressure. The budget deficit is projected to widen this year given expected lower government revenues and higher spending needs related to the pandemic,” said Mr. Tao Zhang, IMF Deputy Managing Director and Board Chair.

“The Fund’s emergency financial assistance under the Rapid Credit Facility will help address the country’s urgent financing needs, improve confidence, and catalyze support from other international partners.”

Zhang said Ghana’s response to the coronavirus has been “timely, targeted, and proactive, focused on increasing health and social spending to support affected households and firms.”

“The Central Bank has recently taken steps to ensure adequate liquidity, preserve financial stability, and mitigate the economic impact of the pandemic, while allowing for exchange rate flexibility to preserve external buffers.

“The uncertain dynamics of the pandemic creates significant risks to the macroeconomic outlook. Ghana continues to be classified at high risk of debt distress. The authorities remain committed to policies consistent with strong growth, rapid poverty reduction, and macroeconomic stability over the medium-term.

“Additional support from other development partners will be required and critical to close the remaining external financing gap and ease budget constraints,” he added.

[/read_more]

Simon Ateba
Simon Ateba
Simon Ateba covers the White House, the U.S. government, the International Monetary Fund, the World Bank and other financial and international institutions for Today News Africa in Washington D.C. Simon can be reached on simonateba@todaynewsafrica.com

LEAVE A REPLY

Please enter your comment!
Please enter your name here

Trending Now

TRENDING

Confidential U.S. government report concludes Ethiopia Prime Minister Abiy Ahmed leading ethnic cleansing in Tigray region

A confidential U.S. government report has concluded that the government of Prime Minister Abiy Ahmed in Ethiopia along with allied militia fighters are leading a systematic campaign of ethnic cleansing in Tigray."Whole villages were severely damaged or completely erased," the report, first obtained by The New York Times, says.It adds that fighters from the neighboring Amhara region of Ethiopia who moved to Tigray...

Stay connected

[/read_more]

[read_more id="2" more="Read full article" less="Read less"]

error: Alert: Content is protected !!
469 Shares
Share
Tweet
Reddit
Pocket
Share
More