Governor of the Bank of Ghana, Ernest Addison, has commended the International Monetary Fund (IMF) as well as the World Bank for responding swiftly to the liquidity needs of developing countries in the wake of the Covid-19 pandemic.
According to Governor Addison, financial assistance provided by the Bretton Woods Institution coupled with the Debt Service Suspension Initiative (DSSI) by the G20 has helped strengthen 100 developing countries’ response to the pandemic, a move he noted he was very proud of.
While commending the two institutions for the remarkable role played in minimising the effects of the pandemic on poor countries, Governor Addison who doubles as the Chairman of the Board of Governors of the IMF and World Bank, stated that the Covid-19 crisis is not yet over as it continues to take a significant toll on poor economies particularly African economies.
He posited that the pandemic has caused more people to slip into poverty and also worsened inequality, particularly among women and children who have been the hardest hit.
In order to avoid a complete reversal of years of poverty reduction and economic progress made by member states of the Bretton Woods Institution – particularly African nations – Governor Addison urged his fellow Governors to act now and enact policies that protect the recent hard-won human capital gains and prevent long-term damage to the poorer and vulnerable segments of societies.
He further called on both the IMF and World Bank to continue providing financial support to developing countries to “avoid this health crisis from becoming a humanitarian crisis.”
The World Bank since the inception of the global pandemic has provided up to $160 billion dollars in financing tailored to ease the health, economic, and social shocks of the pandemic to 100 developing countries.
The IMF has also doubled access to its emergency financing facilities and provided financial assistance to over 80 countries. It has also provided grant-based debt service relief through the Catastrophe Containment and Relief Trust.
Efforts by the IMF and World Bank have also been complemented by the G20 through its DSSI which has provided temporary suspension of bilateral debt service payments to 43 developing countries.
