World Bank Cautions New Government
By Daily Graphic - Daily Graphic General News | Wed, 07 Jan 2009
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NEW: Ghana Tourist Villas offers an unforgettable holiday and business experience in Accra.
The World Bank has painted a gloomy picture of the Ghanaian economy, saying that the macro-economic situation that the incoming government will inherit is “extremely worrisome”.
In a January Report signed by the bank's Country Director in Accra, Ishac Diwan, and copied to the Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Akoto Osei, and the Governor of the Bank of Ghana, Dr Paul Acquah, it warned that the incoming administration would inherit high fiscal and balance of payment deficits that were unsustainable, given the current state of international financial markets.
Quoting mid-December data provided by the Bank of Ghana and the Ministry of Finance, the World Bank said in the coming years, the country would have to spend 14 per cent of its total Gross Domestic Product (GDP) to service its fiscal deficit, while the balance of payment deficit would be larger.
In that circumstance, the Bank predicted a “socially painful financial crisis” if urgent steps were not taken to reduce the twin deficit.
It explained that in the past, the fiscal deficit had been financed from proceeds that accrued from the privatisation of state assets and the leftovers of the Eurobonds issued in 2007, while the current account deficit was financed with foreign reserves.
However, it said, those sources were no longer available.
The World Bank pledged to support the new government to, among other things, address the macro-economic imbalances, attain macro stability and protect the poor and the vulnerable in Ghana.
Towards effecting that assistance, it disclosed that Ghana had a generous IDA allocation of about $450 million per year and a large IDA portfolio that the bank could help to “front-load” for urgent use.
Furthermore, it revealed that it had developed fast-track procedures to support countries that had been hit by the international financial crisis and which could be applied to Ghana.
The World Bank also pledged its preparedness to continue the analytical work it had already started with the outgoing government for the effective use of the anticipated revenue from the country's oil find.
Story: News Desk Report
Source: Daily Graphic - Daily Graphic
In a January Report signed by the bank's Country Director in Accra, Ishac Diwan, and copied to the Minister of State at the Ministry of Finance and Economic Planning, Dr Anthony Akoto Osei, and the Governor of the Bank of Ghana, Dr Paul Acquah, it warned that the incoming administration would inherit high fiscal and balance of payment deficits that were unsustainable, given the current state of international financial markets.
Quoting mid-December data provided by the Bank of Ghana and the Ministry of Finance, the World Bank said in the coming years, the country would have to spend 14 per cent of its total Gross Domestic Product (GDP) to service its fiscal deficit, while the balance of payment deficit would be larger.
In that circumstance, the Bank predicted a “socially painful financial crisis” if urgent steps were not taken to reduce the twin deficit.
It explained that in the past, the fiscal deficit had been financed from proceeds that accrued from the privatisation of state assets and the leftovers of the Eurobonds issued in 2007, while the current account deficit was financed with foreign reserves.
However, it said, those sources were no longer available.
The World Bank pledged to support the new government to, among other things, address the macro-economic imbalances, attain macro stability and protect the poor and the vulnerable in Ghana.
Towards effecting that assistance, it disclosed that Ghana had a generous IDA allocation of about $450 million per year and a large IDA portfolio that the bank could help to “front-load” for urgent use.
Furthermore, it revealed that it had developed fast-track procedures to support countries that had been hit by the international financial crisis and which could be applied to Ghana.
The World Bank also pledged its preparedness to continue the analytical work it had already started with the outgoing government for the effective use of the anticipated revenue from the country's oil find.
Story: News Desk Report
Source: Daily Graphic - Daily Graphic
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World Bank Cautions New Government
Jay Pee | London, UK- (Location: United Kingdom) | 1/7/2009 6:08:00 PM
To the almost clueless Asomdwoe hene [who bizzarely was crying peace yet brandishing the kalashnikov (apologies to Alpha Blondy) by promising a post-election kenya situation should the election results not favour him] and his NDC hooloigans, the NPP had put in a good foundation economically, worked had to discover petroleum, etc. lets lie and intimidate to take over and have a field day and loot the country left and right and get power for the sake of power. In the process the blood of some innocent Ghanaians flowed waa waa and some were maimed, yet mister Mills would not lift a finger to help or say we are sorry. Now, you have power and the reality and hard work begins. Lets hope his fast car can drive Ghana anywhere.Thank God that He exists in heaven and vengeace is His - He will repay!! It is a fearful thing to fall into the hands of the leaving God. May he look and in his own time unleash punishement on people like Koku Anyidoho, John Ahab Rawlings, Alex Segbefia, John Adonijah Attah Mills, Jezebel Konadu Rawlings and John Mahama for sowing a seed of Violoence and lies. May the blood of their victims drown them. Amen!!
World Bank Cautions New Government - Corrected
Jay Pee | London, UK- (Location: United Kingdom) | 1/7/2009 6:19:00 PM
To the almost clueless Asomdwoe hene [who bizzarely was crying peace yet brandishing the kalashnikov (apologies to Alpha Blondy from his song Kalashnikov Love) by promising a post-election Kenya situation should the election results not favour him] and his NDC hooligans, the NPP had put in a good foundation economically, worked hard to discover petroleum, etc. lets lie and intimidate to take over and have a field day and loot the country left and right and get power for the sake of power. In the process the blood of some innocent Ghanaians flowed waa waa and some were maimed, yet mister Mills would not lift a finger to help or say we are sorry. As Nana Addo said, sadly once the results are recorded it did not matter to Mills and the NDC how they were obtained. Mills now, you have power and the reality and hard work begins. Lets hope your fast car can drive Ghana somewhere [apologies to Tracy Chapman].Thank God that He exists in heaven and vengeace is His - He will repay!! It is a fearful thing to fall into the hands of the living God. May he look and in his own time unleash punishement on people like Koku Anyidoho, John Hitler Rawlings, Alex Segbefia, John Ahab Attah Mills, Jezebel Konadu Rawlings and John Mahama for sowing a seed of Violoence and lies. Mnay of these accursed Johns behave exactly the opposite of the venerable John of blessed biblical memory. May the blood of their victims drown them. Amen!!
World Bank Cautions New Government - Corrected
parvel | Finland- (Location: European Union) | 1/8/2009 12:58:00 AM
I think the 1st commentator did not understand the report of the world bank director. When will you stop attacking personnalties and think about development and innovation.
