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IMF approves additional $116 million to Ghana in bailout plan

September 30, 2016 7:14 AM

The IMF reached an agreement with Ghana on a new economic reform program that would be supported by a loan of about $940 million in February 2015.

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The International Monetary Fund (IMF) has approved $116 to Ghana under the three years extended credit facility.

So far, a total of $465 million has been disbursed under the almost $1 billion bailout plan.

The reform program seeks to boost growth and help cut poverty by restoring macroeconomic stability through tighter fiscal discipline, strengthened public finances, and slowing inflation.

The disbursement follows Moody’s rating of the Ghanaian economy as stable.

It also comes as economic growth slowed to 2.5 percent in the second quarter of 2016.

READ MORE: Mahama says economy to grow by 5%

The slow growth was fueled by halt in oil production due to technical fault on the turret bearing on the FPSO Kwame Nkrumah.

The release of $116 million was delayed after the fund raised concerns over certain government policies.

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