Ghana to receive $1 billion share of historic IMF $650 billion SDR allocation on August 23
Ghana is expected to receive its share of the historic $650 billion Special Drawing Rights (SDR) allocation by the International Monetary Fund (IMF) to member countries to continue its fight against the Covid-19 pandemic.
Per reports reaching norvanreports, and as confirmed by the Minister for Finance, Ken Ofori-Atta in a media interaction, Ghana will receive in full its SDR allocation of $1 billion.
According to the Finance Minister, the additional funds will be made available to Ghana by the IMF on August 23, 2021.
Along with its African peers, the continent is expected to receive in total some $23 billion.
The provision of the additional SDR allocation will imply more fiscal resources at the disposal of Ghana to fight the Covid-19 pandemic, but will also mean an increase in the country’s total debt stock which currently stands at 77.1 percent of Gross Domestic Product (GDP).
According to the IMF, the new SDR allocation will provide additional liquidity to the global economic system by supplementing the reserve assets of the Fund’s 190 member countries.
Additionally, it will help support global recovery from the COVID-19 crisis.
“If approved, a new allocation of SDRs would add a substantial, direct liquidity boost to countries, without adding to debt burdens. It would also free up badly needed resources for member countries to help fight the pandemic, including supporting vaccination programs and other urgent measures. And it would complement the range of tools deployed by the IMF to support our membership in this time of crisis.”
“It would also be a powerful signal of the IMF membership’s determination to do everything possible to overcome the worst recession since the Great Depression,” stated Managing Director of the IMF, Kristalina Georgieva in calling for the passage of the historic SDR allocation.
