The European Union (EU) announced earlier this week its decision to resume budget support disbursements to Ghana and Ghanaian Deputy Finance Minister Ato Forson Cassiel said his country is expecting to receive budget support of € 161 million from the EU in a few weeks.
The decision to resume budget support disbursements to Ghana follows the West African country’s resolve to implement a three-year extended credit facility program with the IMF.
The IMF program is aimed at addressing the macroeconomic imbalances which made it impossible for the European Commission “to disburse budget support to Ghana at the end of 2013.”
“The EU stands ready to support Ghana in pursuing its development agenda and particularly in the implementation of the challenging structural reforms ahead,” said the union in a statement, indicating that the total support amounts to €161.38 Million.
The funds will support the implementation of the Ghana Shared Growth and Development Agenda II, Ghana’s national development plan for 2014-2017, health programs, the country’s decentralisation reform process aimed at improving service delivery at local level, and the implementation of policy reforms in the Environment and Natural Resources sector, including the development and implementation of the National Climate Change Strategy.
The union stands ready to support Ghana in pursuing its development agenda and particularly in the implementation of the challenging structural reforms ahead, said the statement, insisting that the sound implementation of the IMF program will be essential to restore macro-economic stability with a view to creating an enabling framework for development, investment and job creation.
The EU also stressed the fundamental importance for Ghana to embark on a comprehensive Public Financial Management reform, including all necessary actions to combat any irregularities and mismanagement of public payroll and said that it will continue to closely monitor progress in these two areas.