Ghana has received the equivalent of US$1 billion from the International Monetary Fund (IMF), being its share of the new Special Drawing Rights (SDRs) allocation to boost the post-COVID economic recovery of member countries.
A statement issued in Accra by the Ministry of Finance said the new SDR allocation, which became effective on August 23, 2021, would augment the additional financing needs of countries, especially low-income countries, caused by the impact of the pandemic on public finances.
It said the African Development Bank (AfDB) estimated that African governments required additional financing of about US$484.6 billion within the next three years to close the financing gap and to emerge from the COVID-19 crisis stronger and more resilient.
“This historic SDR allocation will particularly help countries that are most vulnerable to immediately address the impact of the pandemic towards economic recovery,” it said.
The statement said the SDR allocation was in response to a global call to action, following the devastating effects of the pandemic, including an Africa-wide effort championed by Finance Minister Ken Ofori-Atta and his colleague African Finance Ministers, the AU, UNECA, and supported by key international partners, including The IMF, The World Bank, The G20, and the European Union.
The Special Drawing Right (SDR) is an interest-bearing international reserve asset created by the IMF in 1969 to supplement member countries’ official reserves.
ic advocacy and SDR allocation. It provides additional policy space to support Ghana’s efforts to counter the impact of the COVID-19 pandemic on lives and livelihoods.”
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