Ghana will receive $1.32 billion from the IMF and World Bank to cover 35% of its 2025 budget deficit. Of this, $720 million is from the IMF Extended Credit Facility and $600 million from the World Bank Development Policy Operation. The government plans to address the remainder of the deficit through domestic borrowing.
Ghana’s Finance Minister, Dr. Cassiel Ato Forson, has announced that the government will receive $1.32 billion from the International Monetary Fund (IMF) and the World Bank, which will help fund 35 percent of the country’s budget deficit for 2025. This financial support consists of $720 million from the ongoing IMF Extended Credit Facility (ECF) program and $600 million from the World Bank’s Development Policy Operation (DPO).
Dr. Forson stated that the anticipated cash deficit of GH¢56.9 billion will be addressed through both foreign and domestic financing. The total foreign financing is expected to stand at GH¢21.4 billion, approximately 1.5% of the Gross Domestic Product (GDP). This foreign financing will specifically include funds from the IMF-ECF and World Bank DPO programs.
To cover the remaining 65 percent of the deficit, amounting to GH¢36.9 billion or 2.6% of GDP, the government plans to engage in domestic borrowing, primarily through the issuance of short-term treasury bills. The IMF-ECF program aims to assist Ghana in restoring macroeconomic stability and debt sustainability after enduring significant fiscal challenges.
The World Bank’s DPO is tailored to facilitate policy reforms and bolster economic recovery initiatives. Dr. Forson reaffirmed the government’s commitment to maintaining fiscal discipline and ensuring efficient utilization of the funds received.
In conclusion, Ghana is set to receive substantial financial assistance from the IMF and World Bank, totaling $1.32 billion to address part of its projected budget deficit for 2025. The government expects to finance the remainder of the deficit through domestic borrowing strategies. With a focus on macroeconomic stability and policy reform, the government emphasizes its commitment to fiscal prudence and effective fund management.
Original Source: www.ghanaweb.com
