COVID-19: Ghana and other borrowers to enjoy 1 year extension to pay debts

COVID-19: Ghana and other borrowers to enjoy 1 year extension to pay debts

- The International Monetary Fund (IMF) has extended the period of repayment of funds given out to Ghana and other borrowers

- The decision was reached in order to give the borrowing countries ample time to deal with the coronavirus outbreak

- The IMF has set $500 million for Ghana to deal with the outbreak

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The International Monetary Fund (IMF) has approved an extension of time for Ghana and other borrowers to repay debts owed.

The IMF intends to give the countries in question ample time to support their economic activities as the world battles the coronavirus.

Ghana has already applied for funds from the IMF and this was approved after which $500 million was made available.

READ ALSO: Coronavirus: Gov't predicts partial lockdown will cause 1.5% fall in GDP growth

President Akufo-Addo earlier announced an intent to allot $100 million to fight the outbreak. reports that the Executive Board of the IMF has approved the framework for a new round of bilateral borrowing from January 1, 2021.

This is designed to succeed the current Bilateral Borrowing Agreements (BBAs) currently in place till the end of December 2020.

The framework adopted is similar to the 2016 version agreed for BBAs.

The new BBAs would have an initial term of three years through end-2023, which is extendable by one more year through end-2024.

The new agreements are designed to help maintain the IMF’s lending capacity of US$1 trillion for the next few years, ensuring its ability to respond to the needs of members.

Meanwhile, the minister of finance, Ken Ofori-Atta, has shed light on the plan the government has adopted to finance the fight to eliminate the coronavirus from Ghana.

According to him, the government could source funds from the International Monetary Fund (IMF), the World Bank and the Stabilization Fund.

These sources of funding, he went on, would help close the budgetary gap which is likely to be created by the fiscal impact of the coronavirus on Ghana’s economy.

READ ALSO: Ghana likely to lose GHC11 billion due to coronavirus - Ken Ofori-Atta

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