Ghana and the World Bank Group (International Development Association) has signed a credit agreement worth $200 million for the Second Macroeconomic Stability for Competitiveness and Growth Development Policy Financing (MSCGDPO II) programme.
The amount is for the financing of the 2017 Budget and Economic Policies of Government.
Ken Ofori-Atta, Minister for Finance signed for Ghana whiles Henry Kerali, World Bank Country Director, signed on behalf of the World Bank.
The Board of the World Bank Group approved the Financing at a meeting held in Washington on Wednesday, 20th December, 2017.
The MSCGDPO II was developed through an interactive consultative process involving the Ministry of Finance, selected MDAs and the World Bank.
The Programme is in consonance with the current Government’s commitment to continue the stabilization programme over the medium term with a strong focus on legal, policy and institutional measures that may transcend political cycles.
The combined success of the programmes is crucial for macroeconomic stability and a prerequisite for sustained growth.
The expected outcomes of the MSCGDPO II include: Stronger institutions for more predictable fiscal outcomes; Improved control over the wage bill; Better management of government subsidies and arrears; Enhanced debt management capacity; Stronger governance of SOEs; More effective public investment management; and Reinforcing social protection for the poor and vulnerable.
The Financing is the second in a series of Development Policy Operations (DPOs) planned for 2015 – 2017.
The first DPO of US$150.0 million was disbursed in August 2015.
The International Development Association (IDA) of the World Bank Group, established in 1960, helps the world’s poorest countries by providing grants and low to zero-interest loans for projects and programs that boost economic growth, reduce poverty, and improve poor people’s lives.
IDA is one of the largest sources of assistance for the world’s 75 poorest countries, 39 of which are in Africa.