The Minister of State at the Finance Ministry, Dr. Mohammed Amin Adam, says Ghana is far advanced with negotiation with the World Bank for $900 million budget support facility.
According to him, the budget support facility will be disbursed over the next three years alongside the International Monetary Fund’s $3 billion facility.
Speaking on JoyNews’ PM Express Business Edition, he said, “Once we applied for the IMF supported programme, we also started engaging with the World Bank for budget support and I’m happy to report that we’re far advanced.
“We’re almost concluding the negotiation with the World Bank for a $900 million budget support which will be disbursed in equal installment of $300 million a year. And so for the next three year while the IMF is disbursing the $3billion the World Bank will also be disbursing $900 million, $300 million each year.”
Ghana will be unable to access the international capital market for budget support for at least three years after its debt levels were deemed unsustainable and in high distress.
Currently, the country has succeeded in securing an Executive Board approval from the IMF for a $3billion loan facility to be disbursed over three years.
The first tranche of disbursement is expected to hit the country’s account in the coming days.
According to D. Amin Adam, the World Bank has also committed to support the country’s Financial Stability Fund which was set up to support the local banking sector following a debt restructuring programme.
This is to prevent a collapse of the banking sector.
“The World Bank has also committed to support the Financial Stability Fund with $250 million and then also we’re talking to the African Development Bank to also support the fund up to about $100 million. We’re hoping that other development partners will come forth to support our economy, and not just through budget support but also the Financial Stability Fund so that we can make the domestic banking sector stronger,” he said.