International Monetary Fund (IMF) Executive Board approved the disbursement of $1 billion to Ghana to address the COVID-19 Pandemic.
Ghana has already been affected by the pandemic with the country’s growth slows down, exchange rates under pressure and tightening of financial conditions.
The fund to be drawn under the Rapid Credit Facility will help meet the pressing fiscal and balance of payments needs that the country is facing and speed support from other development partners.
The International Monetary Fund (IMF) is closely monitoring ghana’s situation and is ready to provide policy advice and further support if needed.
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“The COVID-19 pandemic is impacting Ghana severely. The budget deficit is projected to widen this year given expected lower government revenues and higher spending needs related to the pandemic. The Fund’s emergency financial assistance under the Rapid Credit Facility will help address the country’s urgent financing needs, improve confidence, and catalyze support from other international partners.
“The authorities’ response has been timely, targeted, and proactive, focused on increasing health and social spending to support affected households and firms. The Central Bank has recently taken steps to ensure adequate liquidity, preserve financial stability, and mitigate the economic impact of the pandemic while allowing for exchange rate flexibility to preserve external buffers.” Said Tao Zhang IMF Deputy Managing Director and Chair.
Mr Zhang also added that the uncertain dynamics of the pandemic creates notable risks to the country’s macroeconomic outlook as it continues to be classified as being of at high risk of debt distress.
He also said that the authorities remain committed to policies consistent with rapid poverty reduction, strong growth and macroeconomic stability over the medium-term.
“Additional support from other development partners will be required and critical to close the remaining external financing gap and ease budget constraints.” Mr Zhang added.
International Monetary Fund (IMF) has also disbanded funds to other African countries affected by the COVID-19 pandemic with the Republic of Madagascar getting $165.99 million and Rwanda $109.4 million.