$300m loan from World Bank hits BoG account

The US$ 300m loan facility from the World Bank to Ghana has officially been released for budgetary support.

The amount was credited to the Central Bank’s account today, Wednesday March 27, 2023.

It is the first in a series of three operations of $300 million each from the World Bank for crisis response and resilience in Ghana as part of the Resilient Recovery Development Policy Operation.

This fresh foreign inflow will increase the Bank of Ghana buffers to help in the recovery of the economy and slow the depreciation of the cedi.

The fund is expected to also restore fiscal sustainability, support financial sector stability and private sector development, improve energy sector financial discipline and strengthen social and climate resilience.

The Finance Minister, Dr. Mohammed Amin Adam, has stated that the government will adhere to the World Bank-supported Development Policy Operations, despite it being an election year.

Specific reforms supported by this financing series include strengthening domestic revenue mobilization, controlling expenditures, safeguarding financial sector stability, removing barriers to private investment, setting the energy sector on a sounder financial and operational footing, strengthening the country’s social protection system, and mainstreaming climate adaptation and mitigation across policies.

Ghana is expecting a total disbursement of about $1.2 billion from its Development Partners, namely the International Monetary Fund, the World Bank, and the African Development Bank before the end of 2024