Government has confirmed receipt of an equivalent of one billion dollars from the International Monetary Fund (IMF), being its share of the new Special Drawing Rights (SDRs) allocation to boost post-COVID economic recovery of member countries.
On the second of this month the IMF Board of Governors approved a general allocation of 456.5 billion dollars out of which about 33.7 billion dollars is for African countries, to boost global liquidity and economic recovery following the devastating impact of the Covid-19 pandemic on lives and livelihoods.
A statement issued in Accra by the Ministry of Finance said the new SDR allocation, which became effective on August 23, 2021, will augment the additional financing needs of countries, especially low-income countries, caused by the impact of the pandemic on public finances.
It said the African Development Bank estimated that African governments required additional funding of about 484.6 billion dollars within the next three years to close the financing gap and to emerge from the COVID-19 crisis stronger and more resilient.
According to the IMF, the SDR allocation will benefit all members, address the long-term global need for reserves, build confidence, and foster the resilience and stability of the global economy.