IMF to consider Ghana aid deal

Ghana is likely to receive an extension of its three year deal with the International Monetary Fund (IMF).

The lender said that if the West African nation requests for an extension, they will continue assisting it in case of protracted balance of payments problems.

Currently, Ghana has an Extended Credit Facility (ECF) supported by the IMF. The lending agreement provides sustained program engagement over the medium to long term.

The arrangement is of about 900 million US dollars signed in April 2015 which the the government has already utilized more than half.

The funds have gone towards restoring the country’s fiscal balance, high public debt and inflation.

The IMF has said that Ghana’s current account deficit narrowed to 6.5 percent of GDP, contributing to a small buildup of foreign exchange reserves.

An IMF team visited visited the country and held talks with the new regime earlier in the month. The two took stock of the 2016 economic developments and the outlook for 2017.

During the visit, the lender noted that the West African country continues to face economic challenges.

The new government has expressed its intent to continue with the current program with the IMF.

Officials outlined bold policies to restore fiscal discipline and debt sustainability and also to support growth and private sector development.