The Government of Ghana has indicated that it set to receive $1 billion from the International Monetary Fund (IMF) as of yesterday, August 23, 2021 as adding that the funds are unconditional free to be spent to support the economic recovery efforts.
According to a new report by Graphic Online sighted by Awake News, “the amount is the country’s share of the increased allocation of funds to the IMF by its 190 member countries.
Known as special drawing rights (SDR), the $1 billion, which will hit the account of the Bank of Ghana (BoG), has been accessed based on the value of shares that Ghana holds in the fund, which is SDR793 million.
As a result, the money will not come with the usual conditionalities that normally accompany financial supports from the Bretton Woods institution.
The money comes at a time when COVID-19 related expenditures have exacerbated the debt situation, widened the fiscal deficit and starved critical infrastructural projects of funds.”
Readers will recall, the Finance Minister, Ken Ofori-Atta during the presentation of the mid-year review budget stated that the Country despite the covid-19 challenges have not gone to the IMF for a bailout as in the case of the former NDC administration.
But in reply to the Finance Minister’s claim, the Dean of University of Cape Coast Business School, Prof. John Gatsi said impressions created by Finance Minister, Ken Ofori-Attah that President Akufo-Addo led NPP government did not go to the IMF for a bailout programme even in the face of Covid-19 is false.
Prof. Gatsi explained that response that “A bailout is just a financial support or assistance to reduce difficulty or to avoid the collapse of an economy.” and “In 2020 Ghana actually went to the IMF with approval from parliament to receive one billion United States dollars equivalent to six billion Ghana cedis to reduce the sharp pain and avoid the imminent collapse of the economy.”
With the announcement now, mean the government in just 1year is going to the IFM for two billion United States dollars.