Ghana is to receive between 1.1 to 1.2 billion dollars in credit from the World Bank Group at least within the next three years.The facility forms part of the World Bank’s 75 billion dollars development assistance facility to countries across the globe.
Ghana’s allocation is calculated out of the 50 billion dollars allocation to Africa.
The Chief Economist for the Africa Region of the World Bank, Albert G. Zeufack, further explained that the support is to cushion countries against the adverse economic impacts following a sluggish economic growth in 2016.
Mr. Zeufack who was speaking at a media briefing in Accra during his tour to Ghana said,
“2016 saw the worse growth performance for the region at 1.6 per cent.”
“The region also declined in terms of per capita growth,” he added.
When finally approved, the 1.2 billion dollars facility will be disbursed over a three year period of 400 million dollars in each tranche.
Also, Ghana will have a four year grace period before repayment starts.
The interest rate on the credit is 2.5 percent; payable within a twenty-five year period.
Mr. Zeufack maintained that the rate is favourable compared to the about nine percent interest on the country’s Eurobonds.
He could however not disclose the respective areas of channeling the credit facility to develop in the Ghanaian economy.
The World Bank has however predicted a growth of about 2.5 to 3 per cent in 2017.
(By: Pius Amihere Eduku)