Ghana to benefit from World Bank increased loan

By Emmanuel K. Dogbevi

Ghana is among countries listed to benefit from a World Bank loan increase.

The 10 countries in Africa and Asia to benefit from the World Bank’s intended increase in loans include Bangladesh and Cambodia.

Reports say, the increase in loans is intended to make up for the fall in private fund flows to these countries.

The World Bank would increase loans to these countries from $13.5 billion in 2007 to $27 billion, and it is intended to help the countries soak up the current global financial crisis.

The current credit crunch which began in the US and swept across Europe is expected to result in a global recession the level and extent of which is unknown.

There is anxiety among economists globally that the effects of the financial crisis could have devastating effects on the world in the face of food and energy crisis which have already endangered the lives of over 100 million people of the world pushing them into deeper poverty.

The World Bank hopes that by doubling its long-term loans of 15 to 20 years at an interest rate almost at the rate of the London Inter-bank Offered Rate (LIBOR) to these countries it would help them to cope with the global financial crisis.

Source: ghananewstoday.com