Covid-19 fight: IMF approves US$1bn for Ghana

The Executive Board of the International Monetary Fund (IMF) has approved the disbursement of about US$1 billion to be drawn under the Rapid Credit Facility (RCF).
The approval follows a request from Ghana’s Finance Minister for funds to mitigate the economic impact of Covid -19. Ghana has far recorded 566 cases and the figure is expected to double by close of this week following government’s enhanced testing approach
Below is a statement released by Mr. Zhang, Deputy Managing Director of IMF after the approval:
“The COVID-19 pandemic is impacting Ghana severely. Growth is projected to slow down, financial conditions have tightened, and the exchange rate is under pressure. The budget deficit is projected to widen this year given expected lower government revenues and higherspending needs related to the pandemic. The Fund’s emergency financial assistance under the Rapid Credit Facility will help address the country’s urgent financing needs, improve confidence, and catalyze support from other international partners.
“The authorities’ response has been timely, targeted, and proactive, focused on increasing health and social spending to support affected households and firms. The Central Bank has recently taken steps to ensure adequate liquidity, preserve financial stability, and mitigate theeconomic impact of the pandemic, while allowing for exchange rate flexibility to preserve external buffers.
“The uncertain dynamics of the pandemic creates significant risks to the macroeconomic outlook. Ghana continues to be classified at high risk of debt distress. The authorities remain committed to policies consistent with strong growth, rapid poverty reduction, andmacroeconomic stability over the medium-term.
“Additional support from other development partners will be required and critical to close the remaining external financing gap and ease budget constraints.
Ghana I Atinkaonline.com