$102.59m AfDB grant to Ghana complements $3bn IMF deal to rebuild the economy – Country Manager

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The grant that has been approved for Ghana by the African Development Bank (AfDB) is supporting the ongoing $3 billion International Monetary Find (IMF) programme, the Country Manager of AfDB, Ms. Eyerusalem Fasika, has said.

The Government of Ghana and the AfDB have signed a $102.59M grant facility to support Ghana’s Fiscal Consolidation and Economic Recovery Programme.

A Deputy Minister of Finance Abena Osei Asare signed on behalf of the Government of Ghana.

“Today, we are deepening this partnership with the signing of agreement between the government of Ghana and the Africa Development Bank for the implementation of the Budget Support Programme agreed” she said.

The Country Manager – AfDB Ms. Eyerusalem Fasika for her part said that “The signing ceremony marks a key milestone in the efforts of the Government to rebound the economy. This program complements the ongoing IMF Extended Credit Facility.”

Meanwhile, Ghana has missed out on the November 1 timeline set in the IMF programme for the second tranche of the $3 billion bailout facility. The country is currently discussing with its external creditors for debt relief worth $10.5 billion

The Finance Minister earlier submitted proposals to its commercial creditors seeking a haircut of up to 40% and additional debt rework with its bilateral creditors including China and the Paris Club.

Speaking on this matter the Ghana Tonight show on TV3 on Thursday November 9, the Dean of the Business School of the University of Cape Coast, Prof John Gatsi said “The delay is occasioned by the inability of the government of Ghana and the creditors to agree on what is required of them

“The Government of Ghana is pleading with the creditors to accept the certain elongation of maturity of the debts and some cuts, about 30 to 40 percent on the interest or the coupons that they expect.

“That is where the disagreement is coming from. As things are, it seems part of the creditors, such as bilateral and multilateral, are sort of very soft but it was also indicated that some creditors are excused from the debt exchange programs. They will not be affected.

“It is very difficult for commercial creditors to see a chunk of the interest wiped away, I believe that is where the disagreement is and they have not come to terms with it yet. That is why we couldn’t meet the target.”

Ghana received the first tranche of $600million in May this year.

The cash, according to the Ministry, was to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth.

“The first tranche of $600million of Ghana’s low interest of $3billion Extended Credit Facility has been received to help restore macroeconomic stability, sustain the country’s debts and lay a strong foundation for inclusive growth,” the Ministry tweeted on Saturday, May 20.

source by 3news