The African Development Bank (AfDB) endorsed a $102.6 million budget support initiative for Ghana, emphasizing fiscal consolidation and economic recovery, as confirmed by both the bank and Ghana’s finance ministry.
Ghana, a major producer of gold, cocoa, and oil, is currently engaged in discussions with bilateral and commercial creditors to reorganize its debts. West African nation, finds itself excluded from the international capital markets due to its domestic debt expenses.
“The program will facilitate the government’s economic recovery reforms through enhanced public finance, increased productivity, and job creation,” AfDB’s representative, Eyerusalem Fasika, said in a statement released after the signing ceremony.
The programme complements Ghana’s ongoing extended credit facility with the International Monetary Fund, she added.
The IMF’s executive board in May approved a $3bn loan over three years for the African country, with an immediate disbursement of about $600m.
Following a debt-restructuring agreement with its official creditors, Ghana anticipates the disbursement of an additional tranche.