Ghana and World Bank sign $200 million financing agreement

Ghana and the World Bank Group (International Development Association), have signed a credit agreement worth US$200.0 million for the Second Macroeconomic Stability for Competitiveness and Growth Development Policy Financing (MSCGDPO II) programme.

Mr Ken Ofori-Atta, Minister of Finance signed for Ghana whiles Mr. Henry Kerali, World Bank Country Director, signed on behalf of the World Bank.

A statement from the Public Relations unit of the Ministry of Finance said the Board of the World Bank Group approved the Financing at a meeting held in Washington on Wednesday, December 20, 2017.

It said the amount is for the financing of the 2017 Budget and Economic Policies of Government.

The Programme was developed through an interactive consultative process involving the Ministry of Finance, selected MDAs and the World Bank.

“The MSCGDPO II is in consonance with the current Government’s commitment to continue the stabilization programme over the medium term with a strong focus on legal, policy and institutional measures that may transcend political cycles. The combined success of the programmes is crucial for macroeconomic stability and a prerequisite for sustained growth,” the statement said.

The expected outcomes of the MSCGDPO II include: Stronger institutions for more predictable fiscal outcomes; improved control over the wage bill; Better management of government subsidies and arrears; Enhanced debt management capacity; stronger governance of SOEs; More effective public investment management; and Reinforcing social protection for the poor and vulnerable.

The Financing is the second in a series of Development Policy Operations (DPOs) planned for 2015 - 2017. The first DPO of US$150.0 million was disbursed in August 2015.