The International Monetary Fund approved a final $39 million loan tranche to Ghana on Friday, days before the country's three-year, $272.7 million economic program with the fund expires on October 31. The IMF said Ghana's growth is relatively strong, inflation is falling and international reserves have grown.
"Ghana's program implementation during the PRGF (Poverty Reduction and Growth Facility)-supported program has been satisfactory," said Takatoshi Kato, the IMF's deputy managing director, in a statement.
He said Ghana's fiscal policy for 2006 appears on course to meet targeted reductions in the ratio of domestic debt to gross domestic product.
Kato said during the three-year IMF program, Ghana's payments to service its domestic debts were significantly reduced, private sector investment had increased, while spending for poverty reduction programs had risen.
"Monetary policy is expected to remain firm, geared toward achieving single digit inflation," Kato said.
He said the government's focus was now on accelerating economic growth, but cautioned that the challenge was to find resources to develop the economy while preserving debt sustainability. Kato urged "great caution" by Ghana in contracting new loans given the recent cancellation of its IMF and World Bank debts.