Sources close to the Bank of Ghana have confirmed that the bank has received a US$300 million loan facility from the World Bank to supplement the government’s budget.
The sum, which is the first in a series of three operations from the Bretton Wood Institution, was credited into the central bank’s account today, Wednesday March 27, 2024.
The loan is for crisis response and resilience in Ghana as part of the Resilient Recovery Development Policy Operation.
The amount is expected to increase the Bank of Ghana’s buffers to aid economic recovery and help curb the depreciation of the Cedi.
It is also expected to, among other things, restore fiscal sustainability, support financial sector stability and private sector development, improve energy sector financial discipline and strengthen social and climate resilience.
Although it is an election year, the Finance Minister, Dr. Mohammed Amin Adam has assured of the government’s commitment to adhering to the World Bank-supported Development Policy Operations.
Specific reforms supported by this financing series include strengthening domestic revenue mobilization, controlling expenditures, safeguarding financial sector stability, removing barriers to private investment, setting the energy sector on a sounder financial and operational footing, strengthening the country’s social protection system, and mainstreaming climate adaptation and mitigation across policies.
Ghana is expecting a total disbursement of about $1.2 billion from its Development Partners, namely the International Monetary Fund, the World Bank, and the African Development Bank before the end of 2024.
Ghana’s economy now stable, recovery kicking in – Finance Minister
