Ghana gets US$200 million support from World Bank
The World Bank, through its International Development Association
(IDA), has approved a credit facility of US$200 million to support the
country.
The amount will be used to strengthen the country’s institutions,
improve competitiveness for job creation, and maintain social safety
nets to protect the poor and vulnerable.
This was contained in a press release that was issued by the bank.
The Second Macroeconomic Stability for Competitiveness and Growth
Development Policy Financing (DPF) operation will specifically support
reforms by government to manage better subsidies and arrears,
particularly by State-Owned Enterprises (SOEs) in the energy sector,
which have contributed to weakening Ghana's fiscal position and
adversely affected growth.
“Over time, as fiscal outcomes become more predictable, confidence
among both domestic and external investors will grow. This, in concert
with better performance of the energy sector, will help improve Ghana's
business environment, making it more competitive to create more and
better jobs, further reduce poverty, and help boost shared prosperity,”
the release stated.
The World Bank Country Director for Ghana, Mr Henry Kerali, added
that, "as the economy improves and creates more and better jobs, there
is also the need to protect and promote livelihoods of the poor and the
vulnerable segment of the population to help break inter-generational
poverty."
"Building institutions for predictable fiscal outcomes and improving
the business environment for the private sector are likely to remain
priorities for the Government of Ghana as medium to long-term goals," he
added.
About macroeconomic operation
The second macroeconomic operation is the last in a programmatic
series of two single-tranche operations to support the implementation of
Ghana's Second Shared Growth and Development Agenda over the 2014-2017
period.
The operation complements the macroeconomic stabilisation programme
supported under the IMF Extended Credit Facility. In addition, technical
assistance to undertake reforms is being provided under the Ghana
Economic Management Strengthening Technical Assistance Project supported
by the World Bank.
The World Bank Programme Leader and Lead Economist, Mr Errol George
Graham, stated that: “recent commitment to entrench fiscal
responsibility rules and establish a fiscal council to provide oversight
on the implementation of such rules, are positive developments and the
World Bank looks forward to supporting such reforms going forward."
He said the reforms initiated in the energy-related SOE sector
included, corporate governance reforms which were critical to reducing
contingent liability and improving service delivery.
Source: Graphic online
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