The World Bank has approved $300 million in funds to help Ghana’s economic recovery, according to a statement issued on Tuesday.
According to Reuters, this came after Ghana successfully negotiated a reorganization of $5.4 billion in loans with its official creditors.
The approved loan is the first in a series of three transactions totaling $300 million.
The fund is an important part of the World Bank’s overall commitment to disaster response and strengthening resilience in Ghana.
This event comes after Ghana successfully negotiated with its official creditors to restructure $5.4 billion in loans, a crucial milestone in the country’s efforts to achieve debt relief under severe economic woes.
The approved loan is the first in a series of three transactions totaling $300 million. According to the World Bank announcement, it is an important part of the organization’s overall commitment to disaster response and resilience development in Ghana.
Since 2022, Ghanaians have experienced varied amounts of financial difficulty as a result of the country’s economic problems. However, in recent months, the Gold Coast has regained some ground, and its two-year economic instability appears to be coming to an end.
According to the World Bank’s assessment, Ghana’s current economic alleviation is due in part to the periodic modification of monetary policies. The World Bank presents a more hopeful image for the West African state.
Following the debt restructuring agreement, Ghana received a $600 million payout from the International Monetary Fund as part of its $3 billion bailout program.
The IMF agrees with the World Bank, stating that the government’ reform initiatives have helped to boost growth, reduce inflation, and enhance international reserves. The Fund expects the economy to rise by 2.3% in 2023 and 2.8% in 2024.
