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The World Bank has approved US$300 million Development Policy Operation for Ghana.
According to a statement from the Bretton Woods institution, this is to support the country’s economic recovery and resilience and inclusive growth.
The World Bank said the approval of the US$300 million financing package followed Ghana’s agreement in principle with the Official Creditors’ Committee under the G20 Common Framework on the key parameters of the country’s proposed debt restructuring.
“The agreement, which is consistent with the Joint World Bank-International Monetary Fund Debt Sustainability Framework, represents a critical milestone toward restoring debt sustainability,” the statement said.
“Restoring fiscal and debt sustainability, bolstering growth prospects, curbing inflation, and protecting the most vulnerable – measures supported by this financing – are urgent priorities for Ghana,” said, Ousmane Diagana, World Bank Vice-President for Western and Central Africa.
He also said that such efforts were essential steps to allow the country to attract more foreign investment, revitalise its domestic private sector, build resilience against climate change, and improve the quality of life of its people.
Ken Ofori-Atta, Finance Minister, said the US$300 million would play a vital role in easing Ghana’s fiscal constraints, sustain the momentum of economic recovery while protecting the poor and vulnerable.
“The government of Ghana remains committed to restoring macroeconomic stability and to the implementation of lasting reforms to set the economy on a path of strong long-term sustainable growth and transformation,” he noted.
The Resilient Recovery Development Policy Operation is the first in a series of three operations of US$300 million each and part of a broad World Bank engagement for crisis response and resilience in Ghana.
Its objectives are to restore fiscal sustainability, support financial sector stability and private sector development, improve energy sector financial discipline, and strengthen social and climate resilience.
Specific reforms supported by this financing series include strengthening domestic revenue mobilisation, controlling expenditures, safeguarding financial sector stability, and removing barriers to private investment.
The Resilient Recovery Development Policy Operation also helps in setting the energy sector on a sound financial and operational footing, strengthen country’s social protection system, and mainstream climate adaptation and mitigation across policies.