Finance Minister, Ken Ofori-Atta

The Finance Minister, Ken Ofori-Atta says the country should be able to start drawing down the $1 billion IMF rapid credit facility this week. 

He disclosed this in an interview on the JOY BUSINESS Report Tuesday morning.

According to the Finance Minister the Bank of Ghana should initial the process this week for the funds to hit the Central Banks account by this weekend.

Background

The Executive Board of the International Monetary Fund (IMF) on Monday approved the disbursement of $1 billion to be drawn under the Rapid Credit Facility (RCF).

The disbursement will help address the urgent fiscal and balance of payments needs that Ghana is facing, improve confidence, and catalyse support from other development partners. 

According to the IMF Covid-19 pandemic is impacting Ghana severely. Growth is projected to slow down, financial conditions have tightened, and the exchange rate is under pressure.

The budget deficit is projected to widen this year given expected lower government revenues and higher spending needs related to the pandemic.

The Fund’s emergency financial assistance under the Rapid Credit Facility will help address the country’s urgent financing needs, improve confidence, and catalyze support from other international partners.

Finance Minister on conditions for the loan

According to the finance minister, Ken Ofori Atta “It is a zero percent facility, 10 years and five and half moratorium and does not come with any conditionalities”.

The Minister added that this would give government some space to plan to help stabilize the economy.

He also praised the timeliness of the IMF Board to their request which was formally presented to the Fund on March 16, 2020.