- World Bank approves $250 million for a five-year Ghana Financial Stability Program in Ghana
- The project, which was approved on Friday, May 31, 2024, is under the credit of the International Development Association
- The project is expected to directly benefit eligible undercapitalized but viable banks
The World Bank has approved a $250 million International Development Corporation credit for a five-year Ghana Financial Stability Program.
The project, which was approved on Friday, May 31, 2024, will support Ghana’s Financial Sector Strengthening Strategy (FSSS).
Source: Getty Images
He hopes the money will contribute to financial stability through the recapitalization of viable Banks and Specialized Depository Institutions affected by the Domestic Debt Exchange Program (DDEP).
The government established the Ghana Financial Sector Stability Fund (GFSF) to address the impact of the DDEP on financial institutions and provide solvency support to banks, pension funds, etc.
![](https://images.yen.com.gh/images/d4ae714fb06e8870.png?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/d4ae714fb06e8870.png?impolicy=cropped-image&imwidth=256)
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The Ghana Financial Stability Plan is expected to directly benefit eligible undercapitalized but viable banks and SDIs and be made accessible to other banks and SDIs that may need support in
The project complements the IMF’s ongoing expanded credit facility, which supports reforms to improve the macroeconomic environment.
Ghana is set to secure board approval from the International Monetary Fund (IMF) for the third tranche of $360 million.
Ghana is expected to get approved for its third installment when the Executive Council meets in June.
The IMF most recently agreed to disburse a second $600 million to Ghana on January 19, 2024
Ghana first received $600 million when it agreed to the IMF program in May 2023.
Previous struggles to meet IMF conditions
YEN.com.gh reported that Ghana missed the November 1, 2023 deadline set in the IMF program to receive the second tranche of the $3 billion bailout package.
![](https://images.yen.com.gh/images/6ada618b185cc696.png?impolicy=cropped-image&imwidth=256)
![](https://images.yen.com.gh/images/6ada618b185cc696.png?impolicy=cropped-image&imwidth=256)
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Ghana had submitted proposals to commercial creditors asking for a haircut of up to 40%.
There were concerns that the government struggled to get the IMF to approve the $600 million at the time.
His comments followed a response from Bank of Ghana Governor Ernest Addison in which he described MPs who participated in the OccupyBoG protests as hooligans.
Corrected by Berlinda Entsie, reporter and copy editor at YEN.com.gh
Source: YEN.com.gh