By Francis Ntow, GNA Special Correspondent, Bangkok
Bangkok, Oct. 17, GNA – Ghana and five other countries have endorsed the establishment of a US$500 million Lifeline Fund to provide rapid financial support to climate-vulnerable economies facing climate-induced shocks.
The endorsement was made through a non-binding statement signed by the central bank governors of Ghana, Barbados, Bhutan, The Gambia, Guyana and Papua New Guinea at the sixth meeting of the V20 Central Bank Governors Working Group.
The meeting was held on the sidelines of the 2026 International Monetary Fund (IMF)/World Bank Group (WBG) annual meetings in Bangkok.
The Fund is expected to be scaled up to US$1.6 billion in the long term, with contributions from strategic international partners, to support countries facing balance-of-payments pressures arising from climate shocks.
Dr Johnson Pandit Asiama, Governor of the Bank of Ghana, expressed Ghana’s support for the Fund and its underlying principles of providing rapid and predictable balance-of-payments support following climate shocks.
He said the facility would provide financing to prevent climate-induced economic shocks from escalating into deeper macroeconomic and debt crises.
Dr Asiama said the Fund would complement existing instruments under the Global Financial Safety Net (GFSN) and other IMF financing arrangements while retaining its distinct focus on climate-related liquidity pressures.
He urged participating countries to expedite the domestic approval processes required to establish the Fund and encouraged development partners to sustain their support for its successful implementation.
In an interview with the media after the meeting, Mr Seidu Issifu, Minister of State for Climate Change and Sustainability, said the Fund was designed to provide countries with quick access to financing for climate interventions during disasters.
He said climate shocks could reverse development gains and force governments to divert scarce resources to emergency responses, often at the expense of health, education and infrastructure budgets.
Mr Issifu advocated stronger climate-responsive financing, improved access to concessional resources and international backing for the Fund, particularly from G7 and G20 partners.
“Anytime these countries go through debt restructuring, they are excluded from financing arrangement… if they are taking difficult decisions, these should not exclude them from the opportunities,” he said.
He said a key design principle was for the Fund to be shaped by the Global South, with its governance, priorities and disbursement criteria reflecting the experiences and needs of climate-vulnerable nations.
Mr Issifu said Ghana would provide leadership in the next phase of the initiative, drawing on its climate leadership and advocacy on the continent.
He said the country would focus on making an initial financial contribution to demonstrate its commitment and help reduce the risks for larger contributors.
“If successful, the Lifeline Fund could become a template for how climate finance is mobilised – Southern-led, fast-disbursing, and anchored in solidarity rather than conditionality,” the Minister stated.
GNA
Edited by Beatrice Asamani Savage
Reporter: Francis Ntow