World Bank approves $360m for Ghana's economic recovery
The World Bank approved $360 million in support for Ghana's economic stabilization and sector improvements.
Ghana's Finance Minister acknowledged it as a key step towards sustained economic growth and resilience.
The package aligns with Ghana's economic reform strategies under its IMF-supported programme.
Part of broader economic reform strategy
According to a statement from the World Bank, the funding—sourced from the International Development Association (IDA)—was sanctioned by the Board of Executive Directors as part of the Second Resilient Recovery Development Policy Financing operation. This initiative is aligned with Ghana's wider reform efforts under its current IMF-supported economic programme.
'Its objectives are to restore fiscal sustainability, support financial sector stability and private sector development, improve energy sector financial discipline, and strengthen social and climate resilience,' the World Bank noted.
Finance Minister welcomes boost to reform agenda
Ghana's Minister for Finance, Dr Cassiel Ato Forson, welcomed the development, describing it as a crucial milestone in Ghana's recovery journey.
'The successful implementation of reform actions under the IMF programme and the Development Policy Operations series (DPO) has strengthened macroeconomic stability, restored investor confidence, and laid a solid foundation for sustained economic recovery and inclusive growth,' he stated.
Dr Forson added that the funding will help promote 'fiscal discipline and build a more resilient and inclusive economy, capable of withstanding future shocks.'
Support for private sector and energy reforms
The World Bank highlighted that the programme will facilitate the promotion of private-sector-led growth by enhancing fiscal governance, improving domestic revenue mobilisation, and reinforcing financial stability.
The package will also address long-standing issues within Ghana's energy sector, focusing on financial discipline and sustainable operational management.
Climate resilience and social protection in focus
Additionally, the policy financing operation aims to support reforms that build social resilience and embed climate considerations into national policy frameworks—part of efforts to align with sustainable development goals and respond to emerging environmental threats.
Conclusion
Hashtags

Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
4 hours ago
- Yahoo
UN aid meeting seeks end to Global South debt crisis
More than 100 nations attending a UN aid conference pledged this week to help defuse the ticking time bomb of developing countries' ballooning debt, but deciding how is proving more divisive. "The debt burden is crippling the developing world," UN chief Antonio Guterres told the conference in the Spanish city of Seville that reaffirmed support for lifting low-income nations out of their predicament. "We must fix the global debt system which is unsustainable and unfair," Guterres pleaded at the gathering, which runs to Thursday. The total external debt of the group of least developed countries has more than tripled in 15 years, according to UN data. Developing nations now pay $1.4 trillion every year to service their debt -- its highest level in 20 years. Global South nations contend with interest rates two times higher than their richer counterparts when they borrow, increasing the burden. More than three billion people live in countries that fork out more on interest repayments than on health, according to a report commissioned by the late Pope Francis and coordinated by Nobel laureate economist Joseph Stiglitz. A litany of international crises from the Covid-19 pandemic to conflicts have plunged the world economy into turbulence in recent years, with repercussions felt acutely in lesser developed countries. Experts also blame the proliferation of costly and grandiose projects, particularly in African countries that have taken out billions in loans from China. "Many low-income and vulnerable countries are trapped in a vicious cycle of debt, poverty and climate-induced crisis," said the Action Aid NGO, which warned of a "critical" situation. The macroeconomic deterioration has real-world impacts for ordinary citizens, "notably on health policies", Francoise Vanni, of The Global Fund to Fight AIDS, Tuberculosis and Malaria, told AFP. - 'Lack of commitment' - In Seville, several world leaders from the Global South, including Kenyan President William Ruto and Senegal's Bassirou Diomaye Faye, called for a reform of the international financial system to resolve the vicious cycle. The document adopted in Seville -- snubbed by key actor the United States -- calls for the general adoption of clauses in loans that allow borrowing countries to temporarily suspend repayments due to an external shock or natural disaster. Storms, droughts and floods turbocharged by climate change disproportionately affect low-income countries that have historically contributed the least to the emissions that drive global warming. The so-called "Seville Commitment" asks creditors to increase loans in local currency to limit risks caused by foreign exchange fluctuations. It also urges the creation of a central database housed in the Washington-based World Bank "to harmonise and strengthen debt data reporting, enhance debt transparency and reduce reporting burdens". The World Bank says only a quarter of poor nations declare information on their new loans, denying crucial information to lenders. The Vatican-commissioned report also recommended "systemic reforms" and "essential investments" to tackle the crisis, suggesting an end to preferential treatment for private creditors and extending debt relief measures introduced during the pandemic. But NGOs want to go much further than boosting transparency by cancelling debt altogether for the most stricken countries. Hundreds of protesters marched through the stifling heat of Seville on Sunday to demand the measure, which has occasionally been applied in the past. But donor countries, which face debt problems of their own, are reluctant to implement such an initiative, making it unlikely. Action Aid denounced the Global North's "lamentable lack of tangible commitment to truly ending this debt crisis". vab/imm/mdm/gv
Yahoo
8 hours ago
- Yahoo
IMF urges Swiss to strengthen bank resilience
The International Monetary Fund on Tuesday urged Switzerland to strengthen the resilience of its banks and address the flaws exposed by the collapse of Credit Suisse. The IMF said the Swiss Financial Market Supervisory Authority (FINMA) ought to be able to intervene early to detect and address bank failures, including having the power to impose fines, conduct on-site inspections, or intervene to improve risk management. "Enhanced legal powers and resources for FINMA are critical to strengthening the effectiveness of supervision," the IMF said as it presented the findings of an analysis of the Swiss financial sector. Credit Suisse, Switzerland's second-biggest bank, was among 30 international banks deemed too big to fail due to their importance in the global banking architecture. But it imploded in March 2023, with the Swiss government, the central bank and FINMA strongarming the country's biggest bank UBS into a quickfire $3.25-billion takeover. The government feared Credit Suisse would have rapidly defaulted and triggered a global banking crisis that would also have shredded Switzerland's valuable reputation for sound banking. The government set about tightening regulations in the banking sector -- in particular to ensure that UBS can withstand a crisis, given the size of the megabank now, in relation to the Swiss economy. Last month it unveiled its proposals, which included strengthening FINMA's powers and significantly increasing the capital that UBS will have to set aside for its foreign subsidiaries -- much to the bank's displeasure. This could amount to nearly $18 billion of additional capital. However, UBS argued that these requirements -- which are much more onerous than those in other countries -- risked putting it at a disadvantage compared to its competitors abroad. The reforms, aimed at reducing the risks for the state, taxpayers and the economy, "would further strengthen the long-term stability of the Swiss financial centre", the IMF said. The IMF found the Swiss financial sector would be broadly resilient in the event of a severe shock, but nonetheless needed strengthening given the current climate of high uncertainty in the global economy. "Switzerland continues to benefit from strong fundamentals, highly credible institutions, and a skilled labour force, positioning it among the world's most competitive, resilient, and innovative economies," the IMF said in a statement. Nonetheless, it faces challenges from "persistent safe-haven pressures" and the appreciation of the Swiss franc currency, it said. noo/rjm/giv Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Yahoo
12 hours ago
- Yahoo
Italy court acquits consultant in India helicopter case
MILAN (Reuters) -An Italian appeals court has fully acquitted an Italian-American consultant who had previously settled a charge of international corruption in a case related to a 2010 helicopter contract between defence company Leonardo and the Indian government. According to the ruling reviewed by Reuters, the appeals court in the northern city of Brescia upheld a review request filed by Guido Ralph Haschke, revoking the plea bargain and acquitting him "because there was no case to answer". Haschke, 73, a U.S. and Italian citizen living in Switzerland and an international consultant with a background as a World Bank executive, agreed to a plea bargain of one year and 10 months during the first trial in 2014 after being accused of being a middleman in the alleged corruption. The case was a big political issue in Italy and India when it opened in 2012 and tarnished the company's reputation at a time when India had established itself as one the world's biggest arms buyers. Sentences of under two years for people with a previous clean record are conditional in Italy and do not result in time behind bars. Italy's Supreme Court in 2019 acquitted the defendants in the case, two former executives of the Italian state-controlled defence group previously known as Finmeccanica. That prompted Luca Lauri, Haschke's lawyer to initiate the appeal proceedings that led to a ruling late on Monday, in which, according to a statement released by the law firm, the consultant was accorded "the broadest possible acquittal". Haschke had told Reuters in 2014 that his plea bargain was not an admission of responsibility but a "technical decision to avoid years of trials". The case revolved around corruption allegations related to a contract worth 560 million euros ($660 million) to supply a dozen helicopters to the Indian government. The deal between the defence group and India was subject to international arbitration which ended in 2019, effectively cancelling the contract. ($1 = 0.8467 euros)