Ghana’s Finance Minister, Dr. Cassiel Ato Forson, says the government will receive a total of $1.32 billion from the International Momentum Fund (IMF) and the World Bank to its fund 35% budget deficit
According to him, $720 million will be acquired from the ongoing Extended Credit Facility (ECF) of the IMF, while the world bank will provide $600 million.
The GH 56.9 billion monetary deficit is expected to be funded from both foreign and domestic sources. The total foreign net funds amount to GHC 21.4 billion (1.5% of GDP). Foreign funding includes provisions for funding through $720 million payments and DPO funding (the development policy of the World Bank Development Policy), he said.
The government is expected to cover the remaining 65% of the deficit (GHC 36.9B or 2.6% of GDP) through domestic loans, primarily short-term Treasury bill insurance.
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The IMF-ECF program was introduced to support the stability and sustainability of the debt macroeconomics after years of tax challenges.
Similarly, the Operations (World Bank Development Policy Project) (DPO) must support political reform and economic recovery efforts.
He added that the government is committed to fiscal science and sustainable debt management to ensure the efficient use of funds.
