In a significant move towards bolstering Ghana’s financial stability, the World Bank Group has expressed its satisfaction with the agreement in principle on the key parameters of the proposed debt restructuring for Ghana.
This agreement, forged by the Official Creditors’ Committee under the G20 Common Framework, aligns with the Joint World Bank-IMF Debt Sustainability Framework, marking a pivotal step in restoring debt sustainability for the West African nation.
The agreement holds the promise of unlocking substantial financial support from international financial institutions. Among these initiatives is a noteworthy US$300 million budget support operation supported by the International Development Association (IDA).
The proposal is set to undergo consideration by the World Bank’s Board of Executive Directors in the coming week. This financial infusion is poised to play a crucial role in Ghana’s economic recovery, attract investments, and set the stage for a sustainable growth trajectory.
Ousmane Diagana, the World Bank Vice President for Western and Central Africa, emphasized the importance of this agreement in a statement, saying, “This agreement will help unlock financial support by international financial institutions, including a US$300 million budget support operation supported by IDA, which will be considered by the World Bank’s Board of Executive Directors next week. This will help Ghana in its recovery, attracting investments and restoring a sustainable growth path.”
At the forefront of this financial support is the Resilient Recovery Development Policy Operation, the first in a series of three operations with a total value of US$900 million.
This initiative is part of the broader World Bank engagement in support of crisis response and resilience in Ghana. The funding aims to fortify Ghana’s ability to recover from economic challenges, promote job creation, and foster a resilient and sustainable development path.
Ghana is set to implement a comprehensive portfolio of US$4.3 billion in commitments from the World Bank. These funds will be directed through national and regional projects that focus on private sector development, job creation, inclusive service delivery, and sustainable resilient development.
The World Bank’s commitment to supporting Ghana’s recovery underscores the collaborative efforts required on the international stage to address economic challenges and promote sustainable development.
As Ghana moves forward with the proposed debt restructuring, the global community anticipates positive outcomes that will not only stabilize the country’s financial landscape but also contribute to its long-term prosperity.