Creditors’ Committee agreement unlocks US$300 million World Bank budget support for Ghana

Mr Ousmane Diagana, World Bank Vice President for Western and Central Africa has announced that the Bank’s Executive Directors will meet next week to consider some US$300 million for Ghana.

This development comes after Ghana reached an agreement with the Official Creditors’ Committee over debt treatment, necessary for a second tranche US$60m from the International Monetary Fund (IMF).

In a statement issued to the Ghana News Agency on Thursday, January 18, Mr Diagana explained that the US$300 million is a budget support operation supported by the Bank’s International Development Association (IDA).

The Bank welcomed the agreement reached between Ghana and the Official Creditors’ Committee in principle, indicating that it was consistent with the World Bank-IMF Debt Sustainability Framework.

The statement described the development as “critical milestone, adding that it would help Ghana in its economic recovery, attract investments and restore the country on a sustainable growth path.

It also noted that the US$300 million was the first in a series of three operations totalling US$900 million and part of a broad World Bank engagement in support of crisis response and resilience in Ghana.

“The country implements US$ 4.3 billion in commitments from the World Bank through national and regional projects focused on private sector development and jobs, inclusive service delivery and sustainable resilient development,” the statement said.