COVID-19: Government to spend $200 million from Stabilisation Fund to eradicate virus

COVID-19: Government to spend $200 million from Stabilisation Fund to eradicate virus

- The government has indicated its intent to use $200 million out of the Stabilisation Fund to combat the spread of the coronavirus

- According to the finance minister, Ken Ofori-Atta, the decision is in line with Section 23(3) of the Petroleum Revenue Management Act (PRMA)

- He said this on the floor of Parliament when questioned about the measures being implemented to deal with the epidemic

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The government has announced plans of using $200 million from the Stabilisation Fund to combat the spread of the coronavirus in Ghana.

According to the minister of finance, Ken Ofori-Atta, the government would lower the cap on the Fund from the current $300 million to $100 million in line with Section 23(3) of the Petroleum Revenue Management Act (PRMA).

He added that the $100 million would then be transferred into the Contingency Fund (CF) consistent with Section 23(4) of the PRMA.

READ ALSO: Reports say it may take 3 years for African economies to fully recover from the COVID-19

Per a report by the Ghana News Agency, he explained that the money would then be used to fund the Coronavirus Alleviation Programme (CAP).

Ofori-Atta mentioned this when he briefed Parliament on measures being taken to reduce the impact of the epidemic on the economy.

He also noted that the government is also arranging with the Bank of Ghana to defer payments on non-marketable instruments estimated at GHC1.222 billion to 2022 and beyond.

Ofori-Atta went on to say that the government would also adjust expenditures on goods and services as well as Capex downwards by GHC1.248 billion, secure both World Bank and IMF credit facility of GHC1.716 billion and GHC3.145 billion respectively, and also reduce the proportion of Net Carried and Participating Interest due GNPC from 30% to 15%.

YEN.com.gh earlier reported that President Akufo-Addo announced a $100 million package to combat the COVID-19 menace.

Addressing Ghanaians on Wednesday, March 11, 2020, President Nana Akufo-Addo opined that he has directed the Finance Minister, Ken Ofori-Atta to release the cedi equivalent of $100 million to boost the country’s measures and preparedness against the COVID-19 illness.

Ofori-Atta later announced that Ghana has received the $100 million with which it would fight the epidemic.

In another report, he indicated that Ghana intends to secure funds from the World Bank, the International Monetary Fund and the Stabilisation Fund to support Ghana’s economic as the coronavirus continues to affect people and lead to deaths.

Ofori-Atta also mentioned that there is a likelihood of a review of the 2020 budget as the outbreak has distorted Ghana’s economic objectives for the year.

READ ALSO: COVID-19: Ghana and other African countries to enjoy a 1-year extension to pay debts

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Source: Yen.com.gh

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