Story by Phalonzy
Parliament has granted approval for a $360 million financing agreement between the Government of Ghana and the International Development Association (IDA) of the World Bank Group.
This facility, part of the Second Resilient Recovery Development Policy Financing (DPF) operation, aims to support the country’s post-crisis economic recovery and long-term resilience.
The financing agreement is structured around three pivotal pillars: restoring fiscal sustainability, strengthening financial sector stability and energy sector reform, and enhancing social, climate, and economic resilience. Specifically, the facility will help consolidate gains made under the IMF-supported programme, enhance the operational and financial viability of the energy sector, and improve risk-based supervision of financial institutions.
Moreover, the loan comes with highly favourable terms, including a 1.25% service charge, no interest, a 5-year grace period, and a 30-year repayment schedule.
The Parliamentary Committee on Finance, which reviewed the agreement, emphasized that the facility aligns with Ghana’s medium-term debt strategy and will not unduly burden the country’s debt sustainability outlook.
This facility is part of a broader World Bank support package to Ghana, which also includes investment lending and technical assistance. It complements earlier budgetary support under the first Resilient Recovery DPF and is designed to reinforce ongoing reforms under Ghana’s IMF programme. Following a thorough review, the Committee, chaired by Hon. Isaac Adongo, recommended the agreement for adoption, noting that the terms were favourable and the intended reforms were essential for building a more resilient and inclusive economy.
Confidently,with Parliament’s approval, the Ministry of Finance can now access the funds and commence implementation of the outlined policy actions, marking a significant step towards Ghana’s economic recovery and development.
