IMF sets aside $500 million at 0% interest for Ghana to fight coronavirus
- The International Monetary Fund has revealed that there is a $500 million concessionary emergency fund for Ghana to combat the coronavirus
- The announcement was made by the IMF Resident Representative in Ghana, Dr. Albert Touna-Mama, who said the fund comes with no interest
- Dr. Albert Touna-Mama added that it would also come with a moratorium and repayment that will start after five-and-a-half years
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The International Monetary Fund (IMF) has announced a $500 million concessionary emergency fund for Ghana to help it deal with the outbreak of the coronavirus and its effect on the economy.
According to the IMF Resident Representative in Ghana, Dr. Albert Touna-Mama, no interest would be charged on the fund and a moratorium and repayment will start after five-and-a-half years.
He added that there is an ongoing process to evaluate Ghana’s request for financial support but a general guide makes provision for about $500 million for the country.
Source: UGC
READ ALSO: World Bank to support selected countries with $1.4 billion to fight coronavirus
Per a graphic.com.gh report, Dr. Touna-Mama went on to say that the IMF has recognised Ghana’s proactiveness with regard to options available to deal with the current economic challenges, and for that reason, measures are being implemented to support with policy advice and emergency funding.
His assurance comes after the IMF announced its readiness to support countries with fragile economies with varied lending facilities including the Rapid Credit Facility (RCF).
He further indicated that plans were underway to estimate the full impact of the pandemic on the public.
The RCF is focused on low-income countries and could be available at $10 billion and available at zero interest and a moratorium of five-and-a-half years.
YEN.com.gh earlier reported that President Akufo-Addo had announced a $100 million package to fight the coronavirus.
He indicated that the fund was to be used for the expansion of infrastructure, purchase of materials and equipment, and public education.
The minister of finance, Ken Ofori-Atta, later stated that Ghana intended to fall on the IMF, the World Bank and the Stabilisation Fund to mobilise resources to fight the coronavirus.
The IMF later confirmed that Ghana had placed a request for support to deal with the coronavirus. The statement indicated that the request was pending approval from the Board.
In other news, the African Export-Import Bank (Afreximbank) has announced a $3 billion credit facility to aid African countries as the coronavirus continues to affect people on the continent.
The package, dubbed the Pandemic Trade Impact Mitigation Facility, is designed to assist countries to avoid defaulting trade payments and support their foreign exchange reserves.
It is also intended to help exporters of commodities as they struggle with falling revenue levels.
READ ALSO: Coronavirus: Latest report from Fitch says Ghana's economic growth may fall to 6.2%
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Source: YEN.com.gh
