• Live Radio
  • Videos
  • About
  • Contact
  • Despite Media
Ghana Election 2020
  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • VIDEOS
  • Media
    • Videos
    • Audio
    • Live Radio
    • Photos
  • Election 2020
Local News
 
 
 
Home Business Economy 202003

Ghana Heads To IMF For Loan To Address Economic Impact of COVID-19

25-Mar-2020
/ Economy, Business
Email
Print
Comments 2
(2)
Comments
Share on Facebook Share on Twitter
 

The International Monetary Fund (IMF) says it has received a request from Ghana for a disbursement under the Rapid Credit Facility to help the country address the economic impact of the COVID-19 pandemic.
The IMF’s African Department Director, Abebe Aemro Selassie in a statement, said the international organisation was working hard to evaluate Ghana's request and present to the Executive Board consideration.
 
Ghana has recorded 53 confirmed cases of Coronavirus and two deaths from the disease.

President Nana Addo Dankwa Akufo-Addo had earlier directed the Minister of Finance, Ken Ofori-Atta, to make available the cedi equivalent of $100 million to enhance Ghana’s Coronavirus preparedness and response plan.

This amount, according to President Akufo-Addo, “is to fund the expansion of infrastructure, purchase of materials and equipment, and public education.”

Delivering an address to the nation on Wednesday, March 11, 2020, the President explained that, with the declaration by the World Health Organisation (WHO) of the Coronavirus disease as “a pandemic”, it is important that Ghana steps up her preparedness to ensure that, beyond the initial measures that have been put in place, a ‘whole of Ghana’ approach is adopted in preparation for a possible hit within the country’s borders.

Read the entire IMF statement below;

Ghana Requests Rapid Credit Facility Disbursement to Help Fight the Coronavirus March 24, 2020.

IMF’s African Department director Abebe Aemro Selassie today made the following statement:

“Last week, the IMF received Ghana’s request for a disbursement under the Rapid Credit Facility to help the country address the economic impact of the COVID-19 pandemic. We are working hard to evaluate the authorities’ request and bring it forward for Executive Board consideration as soon as possible.”

About the IMF Rapid Credit Facility (RCF)

The Rapid Credit Facility (RCF) provides rapid concessional financial assistance with limited conditionality to low-income countries (LICs) facing an urgent balance of payments need. The RCF was created under the Poverty Reduction and Growth Trust (PRGT) as part of a broader reform to make the Fund’s financial support more flexible and better tailored to the diverse needs of LICs, including in times of crisis. The RCF places emphasis on the country’s poverty reduction and growth objectives.

Financial assistance tailored to country needs

Purpose: The RCF provides low-access, rapid, and concessional financial assistance to LICs facing an urgent balance of payments need, without ex post conditionality. It can provide support in a wide variety of circumstances, including shocks, natural disasters, and emergencies resulting from fragility. The RCF also provides policy support and may help catalyze foreign aid.

Eligibility: The RCF is available to PRGT-eligible members that face an urgent balance of payments need, where a full-fledged economic program is either not necessary (for instance because of the transitory and limited nature of the shock) or not feasible (for instance because of capacity constraints or domestic fragilities).

Duration and repeated use: Financial assistance under the RCF is provided as an outright loan disbursement. While RCF financing takes the form of a one-off disbursement., there is scope for repeat use. A repeat use of the RCF is possible within any three-year period if the balance of payments need is caused primarily by a sudden and exogenous shock or the country has established a track record of adequate macroeconomic policies. However, no more than two disbursements may be made in any twelve-month period. Repeat use of the RCF may facilitate eventual transition to an ECF arrangement.

Access: Access to RCF financing is determined on a case-by-case basis, taking into account the country’s balance of payments need, the strength of its macroeconomic policies, capacity to repay the Fund, the amount of outstanding Fund credit, and the member’s record of past use of Fund credit. In addition, it also takes into account the size and likely persistence of the shock. Under the RCF, access is limited to 50 percent of quota per year and 100 percent of quota on a cumulative basis, with an annual access norm and a per disbursement limit of 25 percent of quota under the “regular” (as opposed to exogenous shock) window and the possibility of up to two disbursements during a twelve-month period. The RCF also has a higher annual access limit of 80 percent of quota annually and 133.33 percent of quota cumulatively for cases where a member faces urgent balance of payments needs arising from a large natural disaster (that is, which causes damage of at least 20 percent of the member’s GDP).

Limited conditionality

Fund support under the RCF is provided without ex post program-based conditionality or reviews. Economic policies supported under the RCF should aim at addressing the underlying balance of payments difficulties and support the country's poverty reduction and growth objectives.

Concessional lending terms

Financing under the RCF carries a zero interest rate, has a grace period of 5½ years, and a final maturity of 10 years.

Source: graphic.com.gh

 

 
 

 

Comments ( 2 ): Post Your Comments >>

Disclaimer: Opinions expressed here are those of the writers and do not reflect those of Peacefmonline.com. Peacefmonline.com accepts no responsibility legal or otherwise for their accuracy of content. Please report any inappropriate content to us, and we will evaluate it as a matter of priority.
Featured Video
Previous Post

Coronavirus: It Is Now Free To Send Gh¢100 And Below Via Mobile Money

Next Post

Tripartite Communique Does Not Address Challenges Of Businesses - Ghana Federation of Labour

 
 

More Stories

Concerns Heighten Over Declining Oil Production
Cedi Faces Pressure Amid US Debt Ceiling Negotiations
No Workers To Fill Vacancies In Germany, Grocery Bills Up 28.6% - A Look At Life in Europe's 'Economic Powerhouse'
IMF Loan "Will Not Spell The Immediate End" Of Economic Challenges - Akufo-Addo
Germany Falls Into Recession Following Inflation
E-levy Rakes In 11% Revenue For Q1 2023
BoG Takes Steps To Curb Cyber Threats
Banking Sector Showing Signs Of Recovery Post-DDEP
Financial Sector Recovery Strategy Ready By End-June – IMF
Next Post

Tripartite Communique Does Not Address Challenges Of Businesses - Ghana Federation of Labour

  Ghana Business News

  • General News
  • Economy
  • Banking & Finance
  • Stock Market
  • Industry/Manufacturing


 
 

Other Economy Stories

  • Concerns Heighten Over Declining Oil Production

  • Cedi Faces Pressure Amid US Debt Ceiling Negotiations

  • No Workers To Fill Vacancies In Germany, Grocery Bills Up 28.6% - A Look At Life in Europe's 'Economic Powerhouse'

  • IMF Loan "Will Not Spell The Immediate End" Of Economic Challenges - Akufo-Addo

  • Germany Falls Into Recession Following Inflation

  • E-levy Rakes In 11% Revenue For Q1 2023

  • BoG Takes Steps To Curb Cyber Threats

  • Banking Sector Showing Signs Of Recovery Post-DDEP

  • Financial Sector Recovery Strategy Ready By End-June – IMF

  • LIST: GRA Chases 93 VAT Defaulters

 

 
 

Popular Videos

LATE NEWS DISCUSSION 26/05/23

UNITED SHOWBIZ WITH MZGEE 27/05/23

DAWURO 26/05/23

DAWURO 26/05/23

Kokrokoo Discussion Segment On Peace 104.3 FM (29/05/2023)

LATE NEWS DISCUSSION 26/05/23

Peace FM Online and Despite Media

peacefmonline.com offers its reading audience with a comprehensive online source for up-to-the-minute news about politics, business, entertainment and other issues in Ghana

Follow us on social media:

Category

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Opinion
  • Trivia
  • Foreign
  • Audio
  • Photos
  • Videos
  • Elections
Decision Time
Ghana Election 2020 2016 Elections
Services
Live Radio Audio on Demand Ghana Elections Advertise with Us
Useful Links
Despite Media About Us Contact Us Feedback Form Terms and Conditions Privacy
Our Brands
Despite Media UTV Peace FM Okay FM Hello FM Neat FM Peacefmonline
  • About
  • Advertise
  • Terms & Conditions
  • Contact
  • Privacy

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media

  • Home
  • Local News
  • Politics
  • Showbiz
  • Sports
  • Business
  • Articles
  • Trivia
  • Foreign
  • Live Radio
  • Photos
  • Videos
  • Audio
  • Election 2020

© 2020 Peacefmonline.com - An online portal owned and managed by Despite Media