• About
  • Advertise
  • Privacy Policy
  • Contact
Saturday, July 12, 2025
  • Login
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2DNew
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships
No Result
View All Result
The Vaultz News
No Result
View All Result

Ghana to Use US$300 Million Out of its SDR Allocation – Dr. Ernest Addison

September 29, 2021
Stephen M.Cby Stephen M.C
in Finance
0
BoG Charges Banks to Submit Capital Restoration Plans

Dr. Ernest Addison - Governor, Bank of Ghana

Dr. Ernest Addison, Governor of the Bank of Ghana (BoG), has disclosed that, the Government of Ghana (GoG) plans to use US$300 million from its International Monetary Fund’s (IMF) Special Drawing Right (SDR) of US$1 billion, to support its 2022 budget.

The use of the US$300 million, Dr. Addison disclosed, is expected to enhance government’s spending, in order to speed up the country’s economic recovery from the novel coronavirus, as well as help to reduce government borrowing.

“We also agree that we have some strong fiscal pressures, so we are ready to make about a third of that available to support the budget.”

Dr. Ernest Addison

Dr. Addison, stated that, although the money from the IMF was typically meant for balance of payment supports, the IMF was willing to allow member countries to apply part to their budgets.

RelatedPosts

BoG Stress Test Uncovers Banks’ Credit Vulnerability Amid Strong Liquidity Defences

Unlock Capital for SMEs Through Pensions, Private Sector Boss Tells Government

Gov’t Pumps GH₵1.4bn into NIB to Avert Collapse Ahead of IMF Review

“We have had some discussions with the government on that and as you know, SDRs are for balance of payment support but the IMF has decided that we may also use it for budget support. So, one has to make a judgement on where the pressures for the economy are and we agreed that we have to have very strong reserves.”

Dr. Ernest Addison

Ms. Kristalina Georgieva, Managing Director of the International Monetary Fund (IMF), disclosed that when used prudently, the SDR allocation will help the economies involved to address the current economic issues.

“The SDR allocation will provide additional liquidity to the global economic system – supplementing countries’ foreign exchange reserves and reducing their reliance on more expensive domestic or external debt. Countries can use the space provided by the SDR allocation to support their economies and step up their fight against the crisis.”

Ms. Kristalina Georgieva

Treatment of the SDR funds

The funds from the Bank of Ghana, would not be treated as central bank’s financing of the budget, but as resources from the bank to help support the fiscal agenda, the Governor disclosed.

“But we do not regard that as a kind of central bank financing which comes from our own resources. These are resources that we are passing on in the sense of the IMF and we do not classify that kind of financing as central bank financing because of the source of the resources.”

Dr. Ernest Addison

The IMF disclosed that the “domestic arrangements for holding SDRs and the accounting treatment may differ across Fund members according to differences in legal and institutional frameworks”.

Also, in economies “where the SDR positions are recorded as assets and liabilities in the central bank’s balance sheet, the SDR holdings would directly increase central bank gross international reserves”, IMF revealed.

Meanwhile, the IMF hinted that, regardless of where SDRs are recorded, being it with the central bank or a government agency, gross international reserves will increase with the SDR allocation.

Ghana’s membership with the Bretton Woods institution, helped the country to receive the said amount from the IMF. The SDR amount received is an interest-free and condition-free money, that is meant to be used by its beneficiaries at their discretion to support economic recovery.

Ghana is part of the 190 member countries of the IMF that benefited from the total SDR of US$ 650 billion in August 2021. The SDR funds were distributed proportionately, in line with each country’s share with the IMF.

The funds came at a time when COVID-19-related expenditures had exacerbated the debt situation, widened the fiscal deficit, and starved critical infrastructural projects of funds, the Governor disclosed.

In the meantime, Dr Addison stated that the central bank and the government were fine-tuning the modalities around the allocation of the funds to pave the way for actual disbursement of the SDR.

READ ALSO: Don’t Expose Yourself to Risk by Carrying Money Around – Mr. Archie Hesse

Tags: Bank of GhanaDr. Ernest AddisonInternational Monetary FundKristalina GeorgievaSpecial Drawing Rights
Please login to join discussion
Previous Post

Kaaka’s family expresses disappointment over Ejura committee’s “family feud” comment

Next Post

MTN Ghana Claws Back Losses to Dominate GSE

Sign up for The Vaultz analytic wire

Get weekly news analysis from top editors at The Vaultz and stay informed on trending economic and business issues from across the globe.

Related Posts

IMF Team to Arrive in Ghana for Talks on Economy and 2025 Budget
Economy

IMF Flags Ghana as High Risk for Debt Distress Despite Debt Being “Sustainable”

July 12, 2025
Sudan Urges ICC Probe Into Foreign Interference
Africa

Sudan Urges ICC Probe Into Foreign Interference

July 12, 2025
NPP blamed for defeat in Ablekuma North rerun
General News

Basintale Criticizes NPP’s Poor Strategy In Ablekuma North 

July 12, 2025
COP Christian Tetteh Yohunu., IGP
General News

Police Assure Justice Over Violence in Ablekuma North Rerun Election

July 12, 2025
Erdogan Supports Iran’s Right To Self-Defence
Asia

Erdogan Hails PKK’s Disarmament

July 12, 2025
IMANI Flags Transparency Gaps in $360 Million World Bank Loan, Loan, Public
General News

IMANI Flags Transparency Gaps in $360 Million World Bank Loan

July 12, 2025
IMF Team to Arrive in Ghana for Talks on Economy and 2025 Budget
Economy

IMF Flags Ghana as High Risk for Debt Distress Despite Debt Being “Sustainable”

by Stephen M.CJuly 12, 2025
Sudan Urges ICC Probe Into Foreign Interference
Africa

Sudan Urges ICC Probe Into Foreign Interference

by Lawrence AnkutseJuly 12, 2025
NPP blamed for defeat in Ablekuma North rerun
General News

Basintale Criticizes NPP’s Poor Strategy In Ablekuma North 

by Lilian AhedorJuly 12, 2025
COP Christian Tetteh Yohunu., IGP
General News

Police Assure Justice Over Violence in Ablekuma North Rerun Election

by Evans Junior OwuJuly 12, 2025
Erdogan Supports Iran’s Right To Self-Defence
Asia

Erdogan Hails PKK’s Disarmament

by Comfort AmpomaaJuly 12, 2025
IMANI Flags Transparency Gaps in $360 Million World Bank Loan, Loan, Public
General News

IMANI Flags Transparency Gaps in $360 Million World Bank Loan

by Silas Kafui AssemJuly 12, 2025
IMF Team to Arrive in Ghana for Talks on Economy and 2025 Budget
Sudan Urges ICC Probe Into Foreign Interference
NPP blamed for defeat in Ablekuma North rerun
COP Christian Tetteh Yohunu., IGP
Erdogan Supports Iran’s Right To Self-Defence
IMANI Flags Transparency Gaps in $360 Million World Bank Loan, Loan, Public
[/vc_row_inner]

Recent News

  • IMF Flags Ghana as High Risk for Debt Distress Despite Debt Being “Sustainable”
  • Sudan Urges ICC Probe Into Foreign Interference
  • Basintale Criticizes NPP’s Poor Strategy In Ablekuma North 
  • Police Assure Justice Over Violence in Ablekuma North Rerun Election
  • Erdogan Hails PKK’s Disarmament
The Vaultz News

Copyright © 2021 The Vaultz News. All rights reserved.

Navigate Site

  • About
  • Advertise
  • Privacy Policy
  • Contact

Follow Us

Welcome Back!

Login to your account below

Forgotten Password?

Retrieve your password

Please enter your username or email address to reset your password.

Log In
No Result
View All Result
  • Top Stories
  • News
    • General News
    • Education
    • Health
    • Opinions
  • Economics
    • Economy
    • Finance
      • Banking
      • Insurance
      • Pension
    • Securities/Markets
  • Business
    • Agribusiness
    • Vaultz Business
    • Extractives/Energy
    • Real Estate
  • World
    • Africa
    • America
    • Europe
    • UK
    • USA
    • Asia
    • Around the Globe
  • Innovation
    • Technology
    • Wheels
  • Entertainment
  • 20MOBPL2D
  • Jobs & Scholarships
    • Job Vacancies
    • Scholarships

Copyright © 2021 The Vaultz News. All rights reserved.