World Bank assures support to stabilise Ghana’s economy

Business News of Friday, 5 December 2014


Jim Yong Kim World Bank Prez

World Bank President Jim Yong Kim has assured Ghana that the Bretton Woods institution will advance the necessary financial support to help stabilise Ghana’s troubled economy.

Mr. Kim gave the assurance at a meeting with President John Mahama this week.

The meeting was aimed at addressing the current challenges facing Ghana’s economy.

Ghana’s economic growth has been slowing, and its budget deficit has been at double-digit for two years running, with a stockpile of payment arrears.

The country’s external current account deficit has been ballooning as well while public debt has been rising rapidly.

The local currency had been depreciating rapidly for not less than 15 months until a let-up recently.

Over the same period, inflation has risen steadily back to double digit.

For many, a World Bank assistance might be coming as good news, especially at a time when the country’s donor partners have frozen disburses.

There is also the possibility of missing an International Monetary Foundation (IMF) bailout programme because of concerns raised by the EU.

The European Union says it has fingered some alleged corruption associated with the country’s public payroll.

Joy Business has gathered that the EU’s concerns have forced the Washington-based lender to briefly hold on to the bailout negotiations.

Speaking to Joy Business after the meeting which went on for hours, Vice President of the Bank, Makhtar Diop said there still are some conditions that Government must first meet for the World Bank support to come.

He would not say when but assured the support would come soon.

The World Bank together with EU and other partners is expected to contribute about 2 billion dollars in financial support for an IMF programme.

Other persons present at the meeting were Vice President Kwesi Amissah Arthur, Finance Minister Seth Terkper and First Deputy governor of the Bank of Ghana Millison Narh.