The World Bank is expected to advance almost $1 billion to Ghana if the country secures an International Monetary Fund (IMF) programme.
This is separate from the $3 billion that is expected to support Ghana’s Balance of Payment from the IMF under a Fund programme.
Finance Minister, Ken Ofori-Atta, disclosed this on Joy News’ PM Express Business Edition, in Washington DC, USA, during the IMF/World Bank spring meetings on Thursday.
Mr Ofori-Atta stated that the expected financial support from the World Bank would be spread over the next three years under a programme.
He added that the funds would be advanced towards some projects and initiatives identified in the 2023 Budget.
“Other donor partners are expected to come on board in terms of providing the required financial assistance to support Ghana’s recovery under the IMF programme,” he announced.
Mr Ofori-Atta disclosed that Ghana had met all the pre-conditions; hence government would get a programme with the IMF.
The Managing Director of the IMF, Kristalina Georgieva, had already stated that the Fund would quickly approve the deal when all the necessary requirements are met.
“What the IMF is looking forward to before it can go to its board for Ghana’s programme approval is the assurance from the Paris Club of Bilateral Creditors that that group is committed to extending the needed financing support,” she said.
Mr Ofori-Atta has assured that he will strictly enforce fiscal discipline under an IMF programme.
He promised to act differently going forward, looking at the challenges that the Ghanaian economy has been through.
“This is what we need to do to help the IMF programme succeed and prevent any derailment going forward,” he appealed.
Mr Ofori-Atta added that government would do its best to ensure that “we improve revenue mobilisation to match government expenditure”.
“We will also ensure that every expenditure is captured under the GIFMIS,” he added.
He noted that government would also introduce new policy measures to cut waste in the public sector.
“We will ensure that the unnecessary expenditure is dealt with aggressively going forward,” he added.
Mr Ofori-Atta has justified recent tax measures instituted by the Ghana Revenue Authority to improve revenue mobilisation.
He insisted that there are many businesses not paying taxes and under-declaring their earnings.