World Bank approves 150 million dollar budget support for Ghana

The World Bank Group's Board of Executive Directors has approved a 150 million dollar budget support for Ghana. The credit from the International Development Association, IDA, supports the First Macro-economic Stability for Competitiveness and Growth Development Policy Financing.

It is the first of three development policy financing operations aimed at helping the Government of Ghana stabilize its economy and shore up fiscal control by implementing financial policies and processes that are transparent and predictable.

The Board also approved IDA’s very first landmark Policy-Based Guarantee of up to 400 million dollars for Ghana, which may be used to support Ghana's future external debt financing. A statement from the World Bank said the proposed credit is the first in a programme series that will make policy more predictable and enhance the productivity of public spending.

It said as Ghana transits from concessional financing towards market-based financing, the cost of public funds will increase, and so would the cost of public capital, to ensure that future obligations can be met. It is the World Bank's hope that the Policy-Based Guarantee will minimize costs and risks.

GBC