The World Bank will provide 142.4 million Special Drawing Rights (SDR) or 200 million U.S. Dollars to support Ghana’s 2018 budget, according to a release it issued here on Thursday.
The Bank signed the credit agreement to that effect with the government of Ghana under the Second Macroeconomic Stability for Competitiveness and Growth Development Policy Financing (MSCGDPO II) program.
Prior to the signing of the agreement, the Board of the World Bank Group had approved the financing at a meeting held in Washington on Wednesday.
The release added that the program was in consonance with the current government’s commitment to continue with the stabilization program over the medium term with a strong focus on legal, policy and institutional measures that may transcend political cycles.
The MSCGDPO II is expected to ensure stronger institutions for more predictable fiscal outcomes; achieve improved control over the wage bill; ensure better management of government subsidies and arrears; enhance debt management capacity; enable stronger governance of State Owned Enterprises; ensure more effective public investment management; and reinforce social protection for the poor and vulnerable.
“The combined success of the program is crucial for macroeconomic stability and a prerequisite for sustained growth,” the release said.