European Union resumes budget support disbursements to Ghana

daniel russell

June 14, 2015 5:04 PM

The European Union (EU) has announce its decision to resume budget support disbursements to Ghana.

A statement released by the union said “the EU stands ready to support Ghana in pursuing its development agenda and particularly in the implementation of the challenging structural reforms ahead”. The union will release in total EUR 161.38 Million of budget support to the Government of Ghana in the coming weeks.

Below is the full statement:

The EU welcomes the recent conclusion and implementation of a 3-year Extended Credit Facility programme with the IMF. This programme will serve to address the macroeconomic imbalances which meant that the European Commission was unable to disburse budget support to Ghana at the end of 2013. It includes a comprehensive reform package on the two aspects which were the main sources of concern for the EU: fiscal deficit and debt sustainability.

In addition, we welcome the adoption and publication in March 2015 of the Government’s Payroll Action Plan to address payroll irregularities. In this regard we are also satisfied to note that the IMF programme includes a strong Public Financial Management component and integrates important benchmarks of this Action Plan.

I am therefore pleased to announce the decision by the European Commission to resume budget support disbursements to Ghana. The EU will release in total EUR 161.38 Million of budget support to the Government of Ghana in the coming weeks. This support is aimed at 4 areas:

The EU stands ready to support Ghana in pursuing its development agenda and particularly in the implementation of the challenging structural reforms ahead. The sound implementation of the IMF programme will be essential to restore macro-economic stability with a view to creating an enabling framework for development, investment and job creation. A comprehensive Public Financial Management reform, including all necessary actions to combat any irregularities and mismanagement of public payroll, will also be fundamental. The EU will continue to closely monitor progress in these two areas.

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daniel russell