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Ghana receives $1 billion from IMF to boost economic recovery

Ghana has received the equivalent of US$1 billion from the International Monetary Fund (IMF).

This is the country’s share of the new Special Drawing Rights (SDRs) allocation to boost the post-Covid economic recovery of member countries.

A statement issued by the Public Relations Unit of the Ministry of Finance, Friday, indicated that, “the government is grateful to the IMF for this historic advocacy and SDR allocation.”

“It provides additional policy space to support Ghana’s efforts to counter the impact of the Covid-19 pandemic on lives and livelihoods. It will support the GHS100 billion Ghana Cares (Obaatanpa) post-pandemic recovery programme,” parts of the statement read.

This SDR allocation is in response to a global call to action, following the devastating effects of the pandemic.
Thus, on 2nd August, 2021, the IMF Board of Governors approved a general allocation of SDR equivalent to US$650 billion.

Out of this, about US$33.7 billion is for African countries, to boost global liquidity and economic recovery following the devastating impact of the Covid-19 pandemic on lives and livelihoods.

The new SDR allocation, which became effective on 23rd August, 2021, will augment the additional financing needs of countries, especially low-income countries, caused by the impact of the pandemic on public finances.

The AfDB estimates that African governments require additional financing of about US$484.6 billion within the next three years to close the financing gap and to emerge from the Covid-19 crisis stronger and more resilient.

According to the IMF, the SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.

The Special Drawing Right (SDR) is an interest-bearing international reserve asset created by the IMF in 1969 to supplement member countries’ official reserves. The general allocations of SDRs are distributed across the IMF membership in proportion to their IMF quota.

According the the statement, the Ministry of Finance will ensure that all statutory requirements are complied with in the use of the SDR.

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