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The World Bank approved USD 300 million in funding to support Ghana’s economic recovery. This development follows Ghana’s successful negotiation to restructure USD 5.4 billion in loans with its official creditors, a significant step in the nation’s efforts to secure debt relief amid its severe economic challenges.
The World Bank approved USD 300 million in funding to support Ghana’s economic recovery. This development follows Ghana’s successful negotiation to restructure USD 5.4 billion in loans with its official creditors, a significant step in the nation’s efforts to secure debt relief amid its severe economic challenges. The approved financing is the initial tranche in a sequence of three operations, each amounting to USD 300 million. The fund is a key component of the broader World Bank commitment to crisis response and building resilience in Ghana.
Ghana, since 2022 has been subjected to varying levels of financial stress as a result of the country’s economic issues. However, the past few months have seen the Gold Coast regaining some ground, and its 2-year economic chaos may be coming to an end.
The World Bank in its report noted that the constant revision of monetary policies is part of the reason why Ghana is currently experiencing some economic relief and WB paints a more optimistic picture for this West African state. Last week, Ghana secured a disbursement of USD 600 million as part of its USD 3 billion bailout program from the IMF after the debt restructuring deal.
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The IMF echoes the World Bank’s perspective, affirming that the authorities’ reform efforts have helped to improve growth, decrease inflation and increase international reserves. The Fund projects that the economy will expand by 2.3% in 2023 and 2.8% in 2024.
