World Bank Group provisionally endorsed the agreement setting basic criteria for Ghana’s proposed debt restructure, as facilitated by the Official Creditors’ Committee under the G20 Common Framework.
This agreement, which is in line with the Joint World Bank-International Monetary Fund (WB-IMF) Debt Sustainability Framework, represents a significant step forward in Ghana’s efforts to restore debt sustainability.
In principle, the World Bank Group approved the conditions established in Ghana’s debt restructuring plan, as determined by the Official Creditors’ Committee under the G20 Common Framework. This significant agreement, which is compatible with the Joint WB-IMF Debt Sustainability Framework, constitutes an important step toward restoring debt sustainability in 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 of three operations totaling $900 million, and it is part of the World Bank’s larger commitment in Ghana to assist disaster response and resilience.
The government is implementing World Bank commitments of US$4.3 billion through national and regional programs focusing on private sector growth and jobs, inclusive service delivery, and sustainable, resilient development.