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The World Bank Group has approved a 250-million-U.S. dollar loan to support Ghana’s financial sector stability program over the next five years, according to a press release issued on Friday.

The release said the loan would help strengthen Ghana’s financial sector after the government’s Domestic Debt Exchange Program (DDEP) impacted some financial institutions.

The loan would address short-term shocks to improve prospects for long-term sustainable development and long-term resilience against future shocks while promoting financial stability, a key requirement to protect people and preserve jobs, it said.

The World Bank said the loan would support Ghana’s Financial Sector Strengthening Strategy to recapitalize viable banks and specialized deposit-taking institutions (SDIs) impacted by the DDEP.

The financial system is critical to the functioning of the Ghanaian economy, providing critical services to households, firms, and the government to support economic growth, according to the release.

“Through the GFSF, this project will contribute to Ghana’s financial stability by providing solvency support to banks and SDIs impacted by the DDEP,” said Robert Taliercio, World Bank country director for Ghana, Liberia and Sierra Leone.

“Through direct support to banks and SDIs, the project will benefit Ghana’s financial sector and the economy by supporting the access of depositors and other financial consumers to savings, payments, and other core financial services provided by adequately capitalized banks and SDIs,” Taliercio added.

Ghana, which has been undergoing economic hardship for years, commenced its economic reforms last May, backed by a loan of three billion dollars from the International Monetary Fund to reverse the economic downturn.