Washington | Wednesday
THE World Bank and the International Monetary Fund have agreed to support a comprehensive 3.7-billion-dollar debt reduction package for the West African nation of Ghana, the bank announced on Tuesday.
Under the agreement, $781-million in debt relief will be delivered to Ghana over a 20-year period and will cover on average 67% of its debt-service obligations to the World Bank’s International Development Association.
Debt relief by the IMF equaling $112-million will cover an average of 49% of the country’s debt-service obligations and will be delivered over the next eight years.
Both the World Bank and the IMF will begin providing debt relief immediately, as will most official bilateral creditors, a statement from the bank said.
The government of Ghana is developing a detailed plan for the use of funds made available through debt relief, which is due to be finalized during the first half of 2002, according to the World Bank.
They will be directed primarily to fund education and health programs and to improve services and infrastructure in the rural sector. – AFP