IMF approves second disbursement to Ghana - sources

The International Monetary Fund's board on Monday approved a second disbursement of funds to Ghana under a three-year programme aimed at restoring fiscal stability and kickstarting growth, a Washington source said.

The country was one of Africa's fastest growing economies, with exports of gold, cocoa and oil, but since 2013 its economy has endured a stubborn deficit, inflation above government forecasts, and a debt-to-GDP ratio of nearly 70 percent.

Ghana entered the $918 million programme in April and the board approved the disbursement after a positive first review conducted at staff level in June, the source said, adding that the next reviews are set for October and early February.

"The next two reviews are critical and it is the view of the Fund that Ghana must tighten its fiscals in the face of its current challenges in order to meet the benchmarks," the source said.

"The country is still grappling with energy problems, inflation still remains high and these need to be addressed quickly," the source said.

Economists say the acid test of the government's ability to adhere to the deal will rise in the run-up to a 2016 election that is likely to be closely fought between incumbent John Mahama and opposition leader Nana Akufo-Addo. (Reporting by Kwasi Kpodo; Editing by Matthew Mpoke Bigg)

Source: Reuters.com