The International Monetary Fund (IMF) has approved a one-year extension of an aid package worth $918 million to Ghana. The package, which was due to expire in April 2018, has now been extended by a further year.
The decision to extend the package was made after the Fund’s Executive Council meeting, during which a tranche of $94.2 million was disbursed.
The IMF said it was encouraged by the progress made by the government in terms of the economic plan and policies being implemented and was motivated to extend it by a further year.
“The authorities have taken some encouraging steps and the economy is showing signs of recovery,” the IMF said in a statement.
The IMF push for a greater effort in formulating policies required to address revenue shortfalls and full enforcement of expenditure control measures to contain spending and prevent the recurrence of domestic arrears. “Ghana should also tackle energy sector inefficiencies, particularly improving the management of the state-owned enterprises,” the statement added.
Deputy Finance Minister Charles Adu Boahen praised the thumbs up from the board.
“It’s positive news. The government team has worked really hard on ensuring that we met all the prior actions before the deadline,” Boahen said.