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IMF Executive Board approves a US

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Via IMF (Den Internationale Valutafond)

IMF Executive Board approves a US$1 billion disbursement to Ghana to address the COVID-19 Pandemic







April 13, 2020











  • On April 13, 2020, the IMF Executive Board approved the disbursement of US$1 billion to be drawn under the Rapid Credit Facility.
  • The COVID-19 pandemic is already impacting Ghana severely. Growth is slowing down, financial conditions have tightened, and the exchange rate is under pressure.
  • The authorities have timely and proactively responded to contain the spread of the COVID-19 pandemic in Ghana and support affected households and firms.

The Executive Board of the International Monetary Fund (IMF) today approved
the disbursement of SDR 738 million (about US$1 billion) to be drawn under
the Rapid Credit Facility (RCF). The disbursement will help address the
urgent fiscal and balance of payments needs that Ghana is facing, improve
confidence, and catalyze support from other development partners.

The COVID-19 pandemic is already impacting Ghana severely. Growth is
slowing down, financial conditions have tightened, and the exchange rate is
under pressure. This has resulted in large government and external
financing needs. The authorities have timely and proactively responded to
contain the spread of the COVID-19 pandemic in Ghana and support affected
households and firms.

The IMF continues to monitor Ghana’s situation closely and stands ready to
provide policy advice and further support as needed.

Following the Executive Board’s discussion of Ghana, Mr. Zhang, Deputy
Managing Director and Chair, issued the following statement:

“The COVID-19 pandemic is impacting Ghana severely. Growth is projected to
slow down, financial conditions have tightened, and the exchange rate is
under pressure. The budget deficit is projected to widen this year given
expected lower government revenues and higher spending needs related to the
pandemic. The Fund’s emergency financial assistance under the Rapid Credit
Facility will help address the country’s urgent financing needs, improve
confidence, and catalyze support from other international partners.

“The authorities’ response has been timely, targeted, and proactive,
focused on increasing health and social spending to support affected
households and firms. The Central Bank has recently taken steps to ensure
adequate liquidity, preserve financial stability, and mitigate the economic
impact of the pandemic, while allowing for exchange rate flexibility to
preserve external buffers.

“The uncertain dynamics of the pandemic creates significant risks to the
macroeconomic outlook. Ghana continues to be classified at high risk of
debt distress. The authorities remain committed to policies consistent with
strong growth, rapid poverty reduction, and macroeconomic stability over
the medium-term.

“Additional support from other development partners will be required and
critical to close the remaining external financing gap and ease budget
constraints.”




Table 1. Ghana: Selected Economic and Financial
Indicators, 2018-25

2018

2019

2020

2021

2022

2023

2024

2025

Est.

Prel.

Proj.

Proj.

Proj.

Proj.

Proj.

Proj.

(Annual percentage change; unless otherwise indicated)

National accounts and prices

GDP at constant prices

6.3

6.1

1.5

5.9

3.3

7.1

4.4

4.3

Non-oil GDP

6.5

5.2

1.8

5.8

4.4

4.8

4.8

4.8

Oil and gas GDP

3.6

17.0

-2.1

6.1

-9.0

38.4

0.0

-1.3

Real GDP (nonoil)

6.5

5.2

1.8

5.8

4.4

4.8

4.8

4.8

Real GDP per capita

4.1

4.0

-0.5

4.2

0.8

4.5

1.7

1.7

GDP deflator

10.2

8.8

9.3

8.3

7.3

6.4

6.5

6.4

Consumer price index (annual average)1

9.8

7.2

9.7

8.5

7.8

6.8

6.1

6.0

Consumer price index (end of period)1

9.4

7.9

9.9

8.2

7.4

6.2

6.0

6.0

(Percent of GDP)

Gross capital formation

14.9

16.2

12.3

15.5

16.6

17.8

19.1

20.7

Government

1.5

1.8

2.2

1.8

1.7

1.8

2.0

2.4

Private

13.4

14.4

10.2

13.8

14.9

16.1

17.2

18.3

National savings

11.7

14.4

7.0

10.4

11.4

13.3

15.6

17.7

Government

-5.5

-5.6

-7.9

-3.8

-3.9

-3.7

-3.6

-3.1

Private2

17.2

20.0

14.9

14.2

15.3

17.1

19.1

20.8

Foreign savings

-3.1

-2.7

-4.5

-3.0

-3.3

-3.2

-2.7

-2.9

Central government budget (cash basis)

Revenue

14.5

14.3

13.5

15.1

15.1

15.1

15.2

15.2

Expenditure

21.5

21.8

23.0

20.1

20.1

20.1

20.2

20.3

o/w financial and energy sector related costs

3.3

2.7

3.1

1.0

1.0

1.0

1.0

0.9

Overall balance3

-7.0

-7.5

-9.5

-5.0

-5.0

-5.0

-5.0

-5.0

Overall balance excluding financial and energy sector
related costs3

-3.7

-4.7

-6.4

-4.0

-4.1

-4.0

-3.9

-4.1

Primary balance3

-1.4

-1.8

-4.1

0.0

0.5

0.1

-0.1

-0.4

Primary balance excluding financial and energy sector
related costs3

1.9

0.9

-1.0

1.0

1.5

1.1

0.9

0.5

Central government debt (gross)

59.0

63.2

68.7

67.2

66.2

65.1

64.1

63.2

Domestic debt4

30.1

30.8

30.1

32.8

31.8

32.3

34.8

37.6

External debt

28.9

32.4

38.6

34.4

34.4

32.8

29.3

25.6

(Annual percentage change; unless otherwise indicated)

Money and credit

Credit to the private sector (commercial banks)

11.2

18.3

4.7

13.7

14.8

14.9

15.7

16.0

Broad money (M2+)

15.4

21.6

10.4

15.5

12.5

14.8

20.3

19.0

Velocity (GDP/M2+, end of period)

3.9

3.7

3.8

3.8

3.8

3.8

3.8

3.8

Base money

0.2

33.6

1.9

18.5

14.4

16.9

24.1

22.1

Bank lending rate (weighted average, percent)

26.9

Policy rate (in percent, end of period)

17.0

(Percent of GDP)

External sector

Current account balance

-3.1

-2.7

-4.5

-3.0

-3.3

-3.2

-2.7

-2.9

Gross international reserves (millions of US$)

5,317

6,634

5,310

5,538

5,612

5,614

5,986

6,031

in months of prospective imports of goods and services

2.6

3.4

2.7

2.7

2.7

2.6

2.7

2.6

Net international reserves (millions of US$)

3,906

5,247

4,011

4,353

4,553

4,683

5,222

5,544

in months of prospective imports of goods and services

1.9

2.7

2.1

2.1

2.2

2.2

2.4

2.4

Total donor support (millions of US$)

612

826

514

579

1,110

663

677

482

in percent of GDP

0.9

1.2

0.8

0.9

1.6

0.9

0.8

0.6

Memorandum items:

Nominal GDP (millions of GHc)

300,596

347,187

385,251

441,791

489,735

558,161

620,390

688,076

National Currency per U.S. Dollar (period average)

4.6

5.2

GDP per capita (US$)

2,217

2,229

2,085

2,121

2,192

2,319

2,398

2,494

Central Government Debt excluding ESLA bond

56.6

61.1

66.8

65.5

64.7

63.8

62.9

62.1

Sources: Ghanaian authorities; and Fund staff estimates and
projections.

1
The CPI was rebased in September 2019. The historical
figures reflect assumptions by IMF staff, and will be
revised once an official historical linked series is
available.

2
Including public enterprises.

3
Excludes discrepancy.

4
Includes Energy Sector Levy Act bond.

For information on the emergency financing requests approved by the IMF
Executive Board, please see a link to the IMF Lending Tracker:



https://www.imf.org/en/Topics/imf-and-covid19/COVID-Lending-Tracker

For upcoming discussions on the emergency financing requests, please see a
link to the calendar of the IMF Executive Board meetings:

https://www.imf.org/external/NP/SEC/bc/eng/index.aspx


IMF Communications Department
MEDIA RELATIONS

PRESS OFFICER: Lucie Mboto Fouda

Phone: +1 202 623-7100Email: MEDIA@IMF.org

@IMFSpokesperson








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