Be diligent in spending IMF’s $1bn loan – Mahama

Flagbearer of the New Democratic Congress (NDC) has urged the Akufo-Addo-led government to be prudent in spending the International Monetary Fund (IMF) approved US$1 billion loan facility for Ghana under the Rapid Credit Facility (RCF).

The IMF on Monday, April 13, 2020, approved a US$1 billion loan facility for Ghana.

John Dramani Mahama announcing his donation of food items to 20,000 households on Facebook today, advised government to be diligent in applying the loan.

“The fast track approval by the IMF of the highly concessional Rapid Credit Facility is therefore timely and very welcome. This will help cushion the economy from the dangers of recession. Our economy has revealed from this COVID-19 stress test that it is still fragile and we need to be prudent in how we manage going forward. We must also be diligent in how we apply the US$1 billion facility as the various tranches are released.”

The Executive Board of IMF said the fund is to help Ghana address the “fiscal and balance of payments needs” and also help the country to improve confidence in its economy especially in the wake of the COVID-19 pandemic.

“The COVID-19 pandemic is already impacting Ghana severely. Growth is slowing down, financial conditions have tightened, and the exchange rate is under pressure. This has resulted in large government and external financing needs. The authorities have timely and proactively responded to contain the spread of the COVID-19 pandemic in Ghana and support affected households and firms,” the IMF noted in a statement.

The Bretton Woods Institution further stated that it was monitoring Ghana’s situation to provide policy advice and further support as needed.