Parliament has approved a $360 million financing agreement between the Government of Ghana and the International Development Association (IDA) of the World Bank Group. Apexnewsgh reports
The facility aims to support Ghana’s post-crisis recovery and build long-term economic resilience.
The financing arrangement is part of the Second Resilient Recovery Development Policy Financing (DPF) operation and will focus on three core areas: restoring fiscal sustainability, strengthening financial and energy sector stability, and enhancing social, climate, and economic resilience. Specifically, the funds will be used to improve domestic revenue mobilization, enhance public financial management, and promote greater debt transparency.
Additionally, the facility will support efforts to ensure financial sector oversight, boost the operational and financial sustainability of the energy sector, and expand social protection, addressing gender disparities and integrating climate responsiveness into national development planning.
The $360 million facility is provided on highly concessional terms, including a 1.25% service charge, zero interest, a five-year grace period, and a 30-year repayment schedule. According to the Finance Committee, chaired by Hon. Isaac Adongo, the terms are consistent with Ghana’s medium-term debt strategy and pose no significant risk to the country’s debt sustainability.
The financing forms part of a wider package of World Bank support for Ghana, which also includes the technical assistance and investment lending.
The financing builds on the first Resilient Recovery DPF and complements reforms under the ongoing IMF programme. Parliament’s adoption of the motion paves the way for the Ministry of Finance to access the funds and begin implementation of key policy measures.
Source: Apexnewsgh.com/Ngamegbulam Chidozie Stephen
