The Minister of Finance, Dr. Kwabena Duffour, says the $1.22 billion given Ghana by the International Monetary Fund together with other foreign inflows should keep the cedi stabilised for quite some time.
He says the funds would also improve the country’s foreign reserves.
“All these funds will go to the central bank to increase the reserve of the central bank and to support the currency to ensure that inflation will be managed properly,” Dr Duffuor said.
According to the minister, $597 million of the $1.22 billion is a loan whilst the remaining $425 million will come in the form of a grant and is part of the funds pledged by the G8 countries at their recent summit in Italy.
He also stressed that the grant of $425 comes with no conditionalities.
$642 million of the entire amount is expected to come in before the year ends.
Dr. Duffuor gives a breakdown of how the funds would be disbursed.
Government is meanwhile expecting Parliament to ratify the loan agreement before the house goes on recess Friday.
