The amount will be used to strengthen the country’s institutions, improve competitiveness for job creation, and maintain social safety nets to protect the poor and vulnerable.

This was contained in a press release that was issued by the bank.

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The Second Macroeconomic Stability for Competitiveness and Growth Development Policy Financing (DPF) operation will specifically support reforms by government to manage better subsidies and arrears, particularly by State-Owned Enterprises (SOEs) in the energy sector, which have contributed to weakening Ghana's fiscal position and adversely affected growth.

“Over time, as fiscal outcomes become more predictable, confidence among both domestic and external investors will grow. This, in concert with better performance of the energy sector, will help improve Ghana's business environment, making it more competitive to create more and better jobs, further reduce poverty, and help boost shared prosperity,” the release stated.

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The World Bank Country Director for Ghana, Mr Henry Kerali, added that, "as the economy improves and creates more and better jobs, there is also the need to protect and promote livelihoods of the poor and the vulnerable segment of the population to help break inter-generational poverty."

"Building institutions for predictable fiscal outcomes and improving the business environment for the private sector are likely to remain priorities for the Government of Ghana as medium to long-term goals," he added.

About macroeconomic operation

The second macroeconomic operation is the last in a programmatic series of two single-tranche operations to support the implementation of Ghana's Second Shared Growth and Development Agenda over the 2014-2017 period.

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The operation complements the macroeconomic stabilisation programme supported under the IMF Extended Credit Facility. In addition, technical assistance to undertake reforms is being provided under the Ghana Economic Management Strengthening Technical Assistance Project supported by the World Bank.

The World Bank Programme Leader and Lead Economist, Mr Errol George Graham, stated that: “recent commitment to entrench fiscal responsibility rules and establish a fiscal council to provide oversight on the implementation of such rules, are positive developments and the World Bank looks forward to supporting such reforms going forward."

He said the reforms initiated in the energy-related SOE sector included, corporate governance reforms which were critical to reducing contingent liability and improving service delivery.