World Bank Group tentatively embraced the agreement outlining essential parameters for Ghana’s proposed debt restructuring, as brokered by the Official Creditors’ Committee within the G20 Common Framework.
This accord, aligned with the Joint World Bank-International Monetary Fund (WB-IMF) Debt Sustainability Framework, marks a significant achievement in the journey towards reinstating debt sustainability in Ghana.
In principle, the World Bank Group expressed its approval of the parameters outlined in the debt restructuring agreement for Ghana, which were reached by the Official Creditors’ Committee under the G20 Common Framework. This pivotal agreement, consistent with the Joint WB-IMF Debt Sustainability Framework, represents a crucial step in restoring debt sustainability within the country.
“This agreement will help unlock financial support by international financial institutions, including a US$300 million budget support operation supported by IDA that will be considered by the World Bank’s Board of Executive Directors next week.
“This will help Ghana in its recovery by attracting investments and restoring a sustainable growth path,” said Ousmane Diagana, World Bank Vice President for Western and Central Africa.
The Resilient Recovery Development Policy Operation is the first in a series of three operations totaling US$900 million and part of a broad World Bank engagement in support of crisis response and resilience in Ghana.
The country implements US$4.3 billion in commitments from the World Bank through national and regional projects focused on private sector development and jobs, inclusive service delivery and sustainable, resilient development.