The Financing Agreement (DCA) between the Government of Ghana and the International Development Association (IDA) of the World Bank in respect of the Fourth Poverty Reduction Support Credit (PRSC-4) was signed on Monday, 19th June 2006. The total amount of the credit is SDR97.4 million (US$140.0 million equivalent) and will be paid into the government accounts in the coming days.

The proceeds of the credit will be used to finance the 2006 Budget (US$125.0 million) and the Health Sector SWAp Programme (US$15.0 million). The funds would be used in two ways. First, the Bank of Ghana on behalf of the Government shall use the foreign exchange to finance foreign expenditures (including crude oil imports) and also to shore up the country's foreign exchange reserves. Second, the Bank of Ghana shall credit the Consolidated Fund with the cedi equivalent of the facility, which shall then be used to finance local expenditures arising out of the budget.

The credit is meant to further complement the government's continued effort to stabilize the economy and reduce poverty through the implementation of the following specific measures derived from the GPRS II: Promoting growth, incomes and employment This credit has been designed to help finance the programmes and projects outlined in the 2006 Budget. It will help entrench our economic stability, create more jobs and provide income opportunities, and therefore reduce poverty.