Ghana gets $360m World Bank financing for macroeconomic stability

Ghana continues to receive financing from the World Bank, as the Institution announces a $360 million to support the country’s macroeconomic stability.

The Bank in a statement copied to Ghana Business News, says its Board of Executive Directors has approved $360 million from the International Development Association for the Second Resilient Recovery Development Policy Financing operation to support the Ghana government’s efforts to restore macroeconomic stability and reinforce the foundations for more sustainable and resilient economic growth for job creation.

The Bank explains that the Second Resilient Recovery Development Policy Operation is part of a broad World Bank engagement for crisis response and resilience in Ghana.

“Its objectives are to: 1) restore fiscal sustainability; 2) support financial sector stability and private sector development; 3) improve energy sector financial discipline; and 4) strengthen social and climate resilience,” the statement said.

Commenting, Ghana’s Minister of Finance, Dr Cassiel Ato Forson said: “The successful implementation of reform actions under the IMF programme and the Development Policy Operations series (DPO) has strengthened macroeconomic stability, restored investor confidence, and laid a solid foundation for sustained economic recovery and inclusive growth.

 We are confident that the measures supported by this DPO will help our efforts to enhance fiscal discipline and build a more resilient and inclusive economy, capable of withstanding future shocks.”

The World Bank believes that the specific reforms supported by the programme will promote fiscal discipline and greater domestic revenue mobilization, enhance the stability of the financial sector and promote private investment for a private-sector-led growth. It will also support measures to improve the financial sustainability of the energy sector, ensuring efficient management and operations. Additionally, the programme will invest in reforms to bolster social resilience and integrate climate-related considerations into public policy, fostering sustainable development.

In his remarks the World Bank’s Division Director for Ghana, Liberia and Sierra Leone, Robert Taliercio said: “Entrenching fiscal and debt sustainability, improving the business environment to attract investment and create jobs, addressing the long-rooted energy sector challenges, and protecting the most vulnerable – measures supported by this financing – continue to be urgent priorities for Ghana. They are essential steps for the country to revitalize its domestic private sector, build resilience against climate change, and improve the quality of life of its people. We look forward to continuing to support Ghana to accelerate and deepen these reforms going forward.” 

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