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Ghana Receive $1.1 Billion IMF Resources

Ghana is to receive about $1.1 billion in resources from the International Monetary Fund, as the country tries to reduce its widening budget deficit.

Chief of IMF mission to Ghana, Peter Allum, said the resources included a $600 million loan over three years and another $452 million in IMF special drawing rights.

The SDR contribution comes from an agreement reached in April among G-20 nations to boost global liquidity through a $250 billion allocation of rights to the IMF's 186 member countries.

Economy

Allum said Ghana's economy was generally holding up well in the wake of the global financial crisis, buoyed by prices for cocoa and gold products.

He said the IMF's $600 million loan program, under the Poverty Reduction and Growth Facility for low-income countries, was designed with fiscal, inflation and international reserve goals.

It includes a government target to reduce the fiscal gap to 9.4 percent of GDP this year, from a current 14-15 percent. A fiscal target of 6 percent of GDP in 2010 will be discussed with the authorities in September.

  

Reuters/Saint/Yinka

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