Global site navigation

Ghana Gets $250 Million Credit Facility From World Bank To Ease Pressure From Domestic Debt Exchange
Economy

Ghana Gets $250 Million Credit Facility From World Bank To Ease Pressure From Domestic Debt Exchange

by  Delali Adogla-Bessa 2 min read
  • The World Bank approved $250 million for a five-year Ghana Financial Stability Project in Ghana
  • The project, which was approved on Friday, May 31, 2024, is under International Development Association credit
  • The project is expected to immediately benefit eligible undercapitalised but viable banks

PAY ATTENTION: Follow YEN's WhatsApp channel for a daily dose of breaking news on the go!

The World Bank approved a $250 million International Development Association credit for a five-year Ghana Financial Stability Project.

The project, which was approved on Friday, May 31, 2024, will support Ghana’s Financial Sector Strengthening Strategy (FSSS).

Ghana gets world bank cash
President Akufo-Addo.
Source: Getty Images

It is hoped the money will contribute to financial stability through the recapitalisation of viable Banks and Specialized Deposit-taking Institutions affected by the Domestic Debt Exchange Program (DDEP).

The Government established the Ghana Financial Sector Stability Fund (GFSF) to address the impact of the DDEP on financial institutions and provide solvency support to banks, pension funds, etc.

Read also

Ministry of Communications responds to concerns raised about 5G contract

Unlock the best of Yen.com.gh on Pinterest! Subscribe now and get your daily inspiration!

The Ghana Financial Stability project is expected to immediately benefit eligible undercapitalized but viable banks and SDIs and become accessible to other banks and SDIs that may need support in the

The project complements the ongoing IMF-Extended Credit Facility, which supports reforms to improve the macroeconomic environment.

Ghana is set to secure board approval from the International Monetary Fund (IMF) for the third tranche of $360 million.

Ghana is expected to get approval for its third tranche when the Executive Board meets in June.

The IMF most recently agreed to disburse a second $600 million to Ghana on January 19, 2024

Ghana first received $600 million when it agreed to the IMF programme in May 2023.

Previous struggles to meet IMF conditions

YEN.com.gh reported that Ghana missed the November 1, 2023, timeline set in the IMF programme to get the second tranche of the $3 billion bailout package.

Read also

Fuel prices expected to go up in first half of June 2024, worsening cedi to blame

Ghana had submitted proposals to commercial creditors seeking a haircut of up to 40 percent.

There were concerns that the government struggled to convince the IMF to approve the $600 million at the time.

His comments followed Ernest Addison, the Bank of Ghana governor's response, in which he described MPs who took part in the OccupyBoG protests as hooligans.

Proofread by Berlinda Entsie, journalist and copy editor at YEN.com.gh

PAY ATTENTION: Stay informed and follow us on Google News!

Source: YEN.com.gh

Authors:
Delali Adogla-Bessa avatar

Delali Adogla-Bessa (Current Affairs Editor) Delali Adogla-Bessa is a Current Affairs Editor with YEN.com.gh. Delali previously worked as a freelance journalist in Ghana and has over seven years of experience in media, primarily with Citi FM, Equal Times, Ubuntu Times. Delali also volunteers with the Ghana Institute of Language Literacy and Bible Translation, where he documents efforts to preserve local languages. He graduated from the University of Ghana in 2014 with a BA in Information Studies. Email: delali.adogla-bessa@yen.com.gh.

Hot: