Ghana - Second Economic Rehabilitation and Support Loan (ERSO II)


Project Summary

Approval Date 29 Mar 2001
Signature Date 23 May 2001
Planned Completion Date 30 Sep 2002
Last Disbursement Planned Date 30 Sep 2002
Sovereign / Non-Sovereign Sovereign
Sector Multi-Sector
DAC Sector Code 11330
Environmental Category 2
Commitment U.A 38,584,142.82
Status Completion

Project General Description

The Second Economic Rehabilitation and Support Loan (ERSO II) is designed to consolidate gains in restoring macroeconomic stability, thereby creating the basis for sustained, broad-based, private sector-led economic growth. The loan’s proceeds were to help cover Ghana’s external financing requirements in the context of a vulnerable external position and low level of reserves. In addition, by providing counterpart funds for the budget, the loan should help reduce the government’s net domestic financing and domestic debt burden by limiting increases in the stock of debt, thereby facilitating a decline in real interest rates. The program in which this intervention falls aims to: (i) restoring macroeconomic stability, (ii) improving the functioning of the public sector (iii) promoting a decentralization policy in favour of the district level; (iv) promoting private sector development through a vast program of divestiture and the removal of structural impediments and (v) reducing poverty.

Project Objectives

The objective of the Second Economic Reform Support Operation (ERSO II) was to provide balance of payments support contingent upon a satisfactory macroeconomic framework and the implementation of key structural reforms in the cocoa, banking, and energy sectors.

Beneficiaries

The project's targets are cocoa producers who should benefit from an increase in producer prices despite the fall in the international price of cocoa. In addition, this project should benefit other actors in the field.

Participating Organization

Funding
African Development Fund
Implementing
GOVERNMENT OF GHANA

Information

IATI identifier 46002-P-GH-K00-004
Last Update 01 Dec 2022

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Contact Details

Geographic Location

Country Ghana
Coordinates Location Name
8.1 -1.2 Ghana