Kenya has received a $750 million loan from the World Bank to support its budget and help the East African economy recover from the effects of the COVID-19 pandemic, the multilateral lender said on Friday.
Trend and Causes
Ghana’s total debt hit GH¢273.8 billion (71% of GDP) at the end-September 2020 from GH¢209.1 billion (62.4% of GDP) in September 2019, indicating an increase of GH¢64.7 billion (30.9%) in one year.
Domestic debt increased from GH¢101.4 billion (29% of GDP) to GH¢135.3 billion (35.1% of GDP) during the period, indicating an increase of GH¢33.9 billion (33.4%) and a share of 49.4%, slightly higher than the 48.5% share a year ago.
The external debt increased from GH¢107.7 billion (30.8% of GDP) to GH¢138.5 billion (35.9% of GDP) over the one-year period ending in September 2020, also indicating an increase of GH¢30.8 billion (28.6%) and a share of 50.6% over the period. (Bank of Ghana, November 2020).
Kenya in Advanced Talks For Another Multibillion Loan
The Kenyan government is in discussions to secure a Sh82 billion ($750 million) loan from the World Bank before the end of June.
In a statement issued on Wednesday, the National Treasury indicated talks were at an advanced stage having fulfilled part of prerequisite conditions enabling the access of the facility dubbed as the World Bank Development Policy Operations (DPO).
Citizen reports that the facility alluded to earlier in exchequer documents is part of external financing targeted at plugging the 2020/21 budget hole exacerbated by a shortfall in tax revenues.
“Kenyan ministries, departments and agencies (MDAs) have delivered all prior actions for consideration by the World Bank under DPO III,” said the Treasury.