Ghana will receive $1.32 billion from the IMF and World Bank to cover 35% of its budget deficit in 2025, with $720 million from the IMF and $600 million from the World Bank. The country plans to finance the remaining deficit through domestic borrowing, primarily short-term treasury bills. The initiative aims to restore economic stability and support essential policy reforms.
Ghana is set to receive a total of $1.32 billion in financial assistance from the IMF and World Bank, aimed at funding 35% of the country’s budget deficit for 2025. Finance Minister Dr. Cassiel Ato Forson confirmed that $720 million will be sourced from the IMF’s Extended Credit Facility (ECF) program, while the World Bank’s Development Policy Operation (DPO) will contribute $600 million.
The current cash deficit is projected at GH¢56.9 billion, which will be financed from both foreign and domestic resources. Specifically, total foreign net financing is expected to reach GH¢21.4 billion, accounting for 1.5% of Ghana’s GDP. This foreign financing primarily includes the $720 million from the IMF and the $600 million from the World Bank.
To address the remaining 65% of the budget deficit, estimated at GH¢36.9 billion or 2.6% of GDP, the government intends to utilize domestic borrowing through short-term treasury bill issuance. The IMF-ECF program aims to restore macroeconomic stability and ensure debt sustainability for Ghana after years of fiscal difficulties.
In a similar vein, the World Bank’s DPO focuses on supporting essential policy reforms and economic recovery initiatives in the country. The government emphasizes its dedication to maintaining fiscal discipline and responsible debt management, pledging that the incoming funds will be used effectively for development purposes.
Ghana is positioned to receive significant financial support from international institutions, which will aid in addressing a considerable portion of its budget deficit for 2025. The collaborative efforts with the IMF and World Bank are designed to stabilize the economy and promote fiscal responsibility. By leveraging foreign financing alongside domestic resources, the government aims to enhance fiscal sustainability and implement necessary economic reforms.
Original Source: www.ghanaweb.com
