IMF approves $1 billion for Ghana to address Covid-19

PRETORIA  – The International Monetary Fund (IMF) has approved $1 billion (about R18.3 billion) to assist Ghana in its struggle against the coronavirus outbreak.

“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 IMF said in a statement.

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

“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 create 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.