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Ghana to borrow from World Bank, IMF to fight coronavirus

Ghana has applied to the World Bank and the International Monetary Fund to secure funding to fight the Covid-19 pandemic.

Addressing Parliament, Finance Minister, Ken Ofori-Atta said Ghana has applied to the World Bank to tap into a US$12 billion fast track Covid-19 facility and the IMF US$10 billion facility to address the deadly virus.

According to him, an expected shortfall in revenue particularly from oil receipts, tourism and the aviation industry has compelled the government to borrow from the Breton Wood institution to close the financing gap.

This he believes will help the nation address any potential threat on the fiscal economy.

 “The measures may include withdrawal from the Ghana Stabilization Fund occasioned by anticipated shortfalls in the ABFA. We will come to this august House to seek for the necessary approvals when it is necessary in due course.

 “We are currently in discussion with the World Bank to tap into a $12 billion fast tracked COVID-19 facility to help close the financing gap. In addition, we are discussing with the IMF to access part of the $10 billion facility made available by the Fund. We are also discussing with other multilateral and bilateral partners to nationals on potential assistance to close the financing gap,” he told Member of Parliaments.

Already the Economic Management Team of the country are evaluating the potential impact of the coronavirus on Ghana.

The Monetary Policy of the Bank of Ghana will also today begin assessing the possible impact of the CODVID-19 pandemic on the domestic economy and thus take the necessary steps to mitigate its impact, to ensure financial and economic stability.

Source: classfmonline.com

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