IMF boss hopeful Ghana’s donor partners will release frozen funds

Managing Director of the International Monetary Fund (IMF), Christine Lagarde, says she expects Ghana’s donor partners to release withheld funds now that the country has  signed up to a 3-year programme.

Responding to a question  posed  Joy Business  at the IMF/World Bank Spring meetings in Washington  DC,  Ms Lagarde said a Fund programme usually has a catalytic effect on countries whose funds have been frozen by donor partners.

“When a country has signed a program, has negotiated the terms and conditions and agreed to what is going to be good for its development, it generally always triggers on the part of other bilateral institutions, of other bilateral lenders, financing that sometimes had been frozen or locked, pending negotiations. So, this is a typical result that we see from program conclusions”, she said.

The country’s donor partners have held up some 500 million dollars because of concerns with the management of  Ghana’s   economy.

Some of Ghana’s donor  partners even proposed that unless  government signed up to an  IMF program, some of these frozen funds will not be released.

However, Swiss Ambassador to Ghana, Gerhard Brugger,  recently told Joy Business that securing  an IMF program will not necessarily result in the release of frozen donor funds.

According to Mr Burgger, the release of development donations from his country, for instance, will depend on whether Ghana’s economy has met key targets set for it.

Ghana is expected to get about 1.5 billion dollars in addition to the 918 million secured under an IMF program.

For some economists, these donor funds are critical because its release will stabilise the economy  and  the Ghana cedi which has been depreciating substantially against the dollar.

Show More

Henry Cobblah

Henry Cobblah is a Tech Developer, Entrepreneur, and a Journalist. With over 15 Years of experience in the digital media industry, he writes for over 7 media agencies and shows up for TV and Radio discussions on Technology, Sports and Startup Discussions.

Related Articles

Back to top button

Adblock Detected