COVID-19: World Bank freezes $500 million debt Ghana owes for 2020

COVID-19: World Bank freezes $500 million debt Ghana owes for 2020

- President Akufo-Addo has announced a freeze on payment of a $500 million debt and its interest by the World Bank

- He explained that the move was spearheaded by the Finance Minister, Ken Ofori-Atta, and his South-African counterpart, Tito Mboweni

- The call for debt relief forms part of a plan to make the Ghanaian economy more resilient

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The World Bank has frozen repayment of some $500 million Ghana owes, as well as interest accrued on it, for the rest of the year 2020.

As part of his seventh update to Ghanaians on Ghana’s plan of action in combating the coronavirus, President Akufo-Addo revealed that the move forms part of a broader pan-African effort for debt relief.

He explained that this is due to the negative impact of the coronavirus on economies in Africa.

READ ALSO: IMF extends time for debt payment for 25 poor countries

According to the president, African finance ministers, led by Ken Ofori-Atta of Ghana and his South African counterpart, Tito Mboweni, achieved a nine-month debt standstill from the World Bank.

This is for the benefit of all member countries that qualify for such a package and are part of the International Development Association (IDA) and starts from Friday, May 1, 2020.

President Akufo-Addo explained that the amount involved is $44 billion and it is likely to create a greater fiscal space to help make the Ghanaian economy much more resilient.

Praising Ofori-Atta for his efforts so far, the president called on him to ensure that there is even a bigger debt relief package for Africa earlier reported that Ken Ofori-Atta called on China to assist African countries with debt reliefs.

According to him, the move would help ease the economic burden on African countries reeling from the impact of the outbreak.

He estimates the cumulative effect of the coronavirus could severely affect Ghana’s economy.

READ ALSO: COVID-19: AU report shows that Africa could lose $500 billion in tax revenue

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