- The Ministry of Finance has confirmed receipt of GHC5.5 billion from the Bank of Ghana (BoG)
- The money forms part of a GHC10 billion package to help the government combat COVID-19
- Finance Minister, Ken Ofori-Atta, announced this in Parliament on Thursday, May 28, 2020
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The Minister of Finance, Ken Ofori-Atta, has informed the House of Parliament that the government has received GHC5.5 billion from the Bank of Ghana (BoG).
The amount represents the first tranche of relief agreed with the Central Bank with regard to the fight against COVID-19.
Information available shows that it was released on Friday, May 15, 2020.
In a memo to the House, dated Thursday, May 28, 2020, Ofori-Atta revealed that the fund is intended to provide emergency relief following the economic implications of COVID-19.
Per a report by myjoyonline.com, he explained that “given the exceptional circumstances and the challenges, the Minister of Finance, the Governor of the Bank of Ghana and the Controller and Accountant General as required under Section 30 of the Bank of Ghana (Act 612) as amended have agreed to trigger the emergency financing provision under the law, which permits increasing the limit on the purchase of Government securities by Bank of Ghana in the event of any emergency, to help finance the residual expenditures.”
Ofori-Atta went on to say that some of the financing measures identified by the government include the IMF Rapid Credit Facility of US$1 billion, World Bank Development Policy Operation (DPO) of US$350 million and the Stabilization Fund US$ 219 million.
He added that there is still a residual financing gap of about GH¢17.9 billion to be sourced from both domestic and external markets.
YEN.com.gh earlier reported that the BoG announced support for the government with GHC10 billion to help close Ghana’s deficit gap.
The Central Bank halted support for the government after Ghana entered into an Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF).
It, however, resumed after the outbreak of the coronavirus led to a widening of the budget deficit from 4.7% to 7.8% of Gross Domestic Product (GDP).
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