COVID19: Ghana to seek for Support from the IMF, World Bank and Others

The Finance Minister of Ghana, Ken Ofori-Atta, has said that the government will rely on funds from the World Bank, IMF, and the Stabilization Fund to make up for the gap to be created by the fiscal impact of the COVID19 on the Ghanaian economy.

Addressing Parliament on the fiscal impact of the coronavirus, the Finance Minister said this has become necessary since revenue from the petroleum industry, revenue from the tourism and aviation industries among others, have been projected to decline from the meltdown associated with the novel virus.

He said the government will return to Parliament for the legal backing required to access the required funding to bridge the expected financing gap.

“The measures may include withdrawal from the Ghana Stabilization Fund occasioned by anticipated shortfalls in the ABFA. We will come to this august House to seek for the necessary approvals when it is necessary in due course.”

The Ghana finance minister also added “We are currently in discussion with the World Bank to tap into a $12 billion fast-tracked COVID19 facility to help close the financing gap. In addition, we are discussing with the IMF to access part of the $10 billion facility made available by the Fund. We are also discussing with other multilateral and bilateral partners to nationals on potential assistance to close the financing gap.”

The Minister for Information, Kojo Oppong Nkrumah, has earlier indicated that Ghana’s Economic Management Team and the Finance Ministry, has carried out adequate assessment of the economic impact of the spread of the coronavirus pandemic.

Ghana has recorded seven cases of the COVID-19 so far. All the cases recorded so far are imported. In response, the government has taken measures to prevent the virus from spreading. These measures include an earmarked US$100million to support the containment of the virus.

READ MORE: Covid 19: Ghana Sets Aside $100 Million to Prepare to Combat Coronavirus

The government has also implemented measures on social distancing. These include restriction of large gatherings for religious activities, conferences, schools and funerals among others.

Inbound travels from countries with 200 or more of the COVID-19 cases have been halted temporarily as Ghana works to reduce the imported cases recorded so far.