Ghana is seeking support from the World Bank to close any possible financing gap in the 2020 Budget as a result of the negative impact of the Coronavirus (Covid-19) pandemic.
Government is therefore discussing with the World Bank Group to tap into a US$12 billion fast track COVID-19 facility to help with the measure.
Finance Minister, Ken Ofori-Attah disclosed this when he briefed Parliament on Tuesday 17th March 2020 on the implication of the Coronavirus on the Ghanaian economy.
He stated that though events of the infection are still unfolding, a preliminary analysis by the Ministry of Finance indicates Coronavirus will impact negatively the petroleum receipts due to the collapse of international crude oil prices, custom receipts, and other receipts.
Others, he said, include health-related expenditures and financing conditions on the fiscal front.
According to him, the infection is also affecting tourism, travel and conferences, Foreign Direct Investments (FDI), international trade, food and nutrition and poverty reduction.
He indicated that government is also in discussion with the International Monetary Fund (IMF) to access part of a US$10 billion facility made available to address the Coronavirus through the Rapid Credit Facility.
“We are also in discussion with other multilateral and bilateral partners on potential assistance to close the financing gap,” he stated
According to Mr. Ofori Atta, the Ministry has worked tirelessly and successfully and raised US$ 3 billion from the Eurobond Market at the best rates after being granted approval by Parliament.
The capital market, he said, has since collapsed but stressed the timely issuance of Ghana’s Eurobond has provided the necessary buffer to support the economy in these grave times.
Contributing to the Minister’s statement, Ranking Member on the Finance Committee, Cassiel Ato Forson, expressed disappointment the Minister failed to provide an economic impact assessment of the infection on the Ghanaian economy rather than the fiscal assessment.
According to him, the fiscal deals with only the expenditures and receipts in the economy and stressed an economic impact assessment would have provided a much wider review of the situation.
He noted, however, much as there is a negative impact on the economy due to the Coronavirus in terms of revenue receipts, the Ghanaian populace could also benefit as a result of low oil prices.
Mr. Forson observed that this would reduce the cost of doing business for a lot of companies and stressed the need for an evaluation of this to assess whether it will translate into real sector economic growth or affect the economy.
He argued that failure of the Minister to inform the House about the $100 million announced by the President to fight the Coronavirus was unfortunate especially whether the Ministry has been able to draw down the money or not.
According to him, the Minister also lost the opportunity to provide a breakdown of where that money would be applied in the economy.
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By: Sammy Lou/Frontpageghana.com/Ghana
