Bank of Ghana Receives $300 Million World Bank Loan to Bolster Government’s Budget

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Bank of Ghana Receives $300 Million World Bank Loan to Bolster Government’s Budget

Sources within the Bank of Ghana have confirmed the reception of a significant financial boost as the institution secures a US$300 million loan facility from the World Bank.

The loan, which represents the initial tranche of a three-part operation, marks a pivotal step in fortifying Ghana’s economic resilience and crisis response mechanisms.

Credited into the central bank’s coffers on Wednesday, March 27, 2024, the loan forms part of the Resilient Recovery Development Policy Operation, aimed at bolstering Ghana’s financial stability amidst ongoing economic challenges.

The injection of funds is anticipated to enhance the Bank of Ghana’s financial buffers, playing a crucial role in facilitating economic recovery and mitigating the depreciation of the Ghanaian Cedi. Additionally, the loan is earmarked to address various economic imperatives, including restoring fiscal sustainability, fostering financial sector stability, promoting private sector development, enhancing energy sector financial discipline, and fortifying social and climate resilience initiatives.

Despite the backdrop of an election year, Finance Minister Dr. Mohammed Amin Adam has reaffirmed the government’s unwavering commitment to adhering to the reform initiatives supported by the World Bank-funded Development Policy Operations. These initiatives encompass a spectrum of reforms, ranging from bolstering domestic revenue mobilization and expenditure control to safeguarding financial sector stability and promoting private investment.

Specific reforms underpinned by this financing series include strengthening the country’s social protection system, mainstreaming climate adaptation and mitigation efforts, and setting the energy sector on a more sustainable financial and operational trajectory.

Ghana anticipates further disbursements totaling approximately $1.2 billion from key development partners, including the International Monetary Fund, the World Bank, and the African Development Bank, before the close of 2024. These inflows are poised to provide vital support as Ghana navigates through the complexities of economic recovery and lays the groundwork for sustained growth and development.

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