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IMF to consider Ghana aid deal


<p>Ghana is likely to receive an extension of its three year deal with the International Monetary Fund (<span class="caps">IMF</span>).</p> <p>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. </p> <p>Currently, Ghana has an Extended Credit Facility (<span class="caps">ECF</span>) supported by the <span class="caps">IMF</span>. The lending agreement provides sustained program engagement over the medium to long term. </p> <p>The arrangement is of about 900 million US dollars signed in April 2015 which the the government has already utilized more than half.</p> <p>The funds have gone towards restoring the country’s fiscal balance, high public debt and inflation.</p> <p>The <span class="caps">IMF</span> has said that Ghana’s current account deficit narrowed to 6.5 percent of <span class="caps">GDP</span>, contributing to a small buildup of foreign exchange reserves. </p> <p>An <span class="caps">IMF</span> 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.</p> <p>During the visit, the lender noted that the West African country continues to face economic challenges. </p> <p>The new government has expressed its intent to continue with the current program with the <span class="caps">IMF</span>.</p> <p>Officials outlined bold policies to restore fiscal discipline and debt sustainability and also to support growth and private sector development.</p>
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