The World Bank has committed $250 million to Ghana’s Financial Stability Fund, according to a statement by the country’s Finance Minister, Ken Ofori-Atta. The fund is being established to ensure that the government can intervene in case of solvency and liquidity issues.
Mr. Ofori-Atta explained that the funds are expected to hit the accounts by the third quarter of this year. He further clarified his statement in an interview with Joy FMs Midday News, reiterating that the World Bank has committed the aforementioned amount. Talks are also underway with other donor partners, including the African Development Bank, for additional resources into the fund.
The establishment of the Financial Stability Fund is a positive development for Ghana, which has struggled with a volatile financial sector in the past. The fund will serve as a safeguard against future financial instability and will allow the government to respond promptly to any threats to the financial sector.
In addition to the World Bank’s commitment, the Ghanaian government plans to contribute funds to the stability fund. Mr. Ofori-Atta also called on other multilateral development banks and bilateral partners to assist the government in securing the stability of the country’s financial sector.
The pledge from the World Bank comes at a time when Ghana is grappling with the economic impact of the Covid-19 pandemic. The country’s economy, which is heavily dependent on exports of oil and cocoa, has been hit hard by the pandemic’s disruptions to global trade and a drop in commodity prices.
The establishment of the Financial Stability Fund will not only provide a means for the government to intervene in case of solvency and liquidity issues but will also signal to investors that the government is committed to maintaining a stable financial sector. This could help to boost investor confidence and attract much-needed foreign investment into the country.
Overall, the commitment of $250 million from the World Bank to Ghana’s Financial Stability Fund is a positive development for the country’s financial sector. The fund will serve as a safety net against future financial instability and will allow the government to respond swiftly to any threats to the financial sector. This, in turn, could help to boost investor confidence and stimulate economic growth in Ghana.
Source: norvanreports.com