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- To deal with the rising fiscal and BOP crisis of Ghana, the International Monetary (IMF) Executive Board has approved one billion dollars.
- The facility under the Rapid Credit Facility was aimed at restoring the confidence and shore up the Ghanaian economy
To deal with the rising fiscal and balance of payment crisis of Ghana, primarily arising out of the COVID-19, the International Monetary (IMF) Executive Board has approved one billion dollars for the government of Ghana. COVID-19 pandemic reportedly is impacting Ghana severely slowing the country’s growth and putting pressure on the Ghanaian Cedi leading to large government and external financing needs.
The Press release from IMF, states that the facility under the Rapid Credit Facility, was aimed at restoring the confidence and shore up the Ghanaian economy. The disbursement of SDR 738 million to be drawn under the RCF is expected to deal with the urgent fiscal and balance of payments needs faced by the Ghanaian economy, and also catalyse support from other development partners. The IMF acknowledged the proactive and timely response of the Ghanaian government to contain the spread of the pandemic. The Ghanaian government increased its health and social spending to support affected households and firms. The Central Bank recently took appropriate measures to ensure adequate liquidity, preserve financial stability, and mitigate the economic impact of the pandemic, while allowing for exchange rate flexibility to preserve external buffers.
IMF indicated that it will continue to monitor Ghana’s situation closely, and was ready to offer policy advice and further support if necessary.
