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Jun 1, 2011

94.3 MILLION CREDIT FACILITY APPROVED


A credit facility for Ghana, worth $94.3 million has been approved by the Executive Board of the International Monetary Fund (IMF).

This follows the third and fourth reviews of Ghana’s performance under the economic program supported by the Extended Credit Facility (ECF).

The IMF made this known in a release at their website, adding that the completion of the reviews will enable an immediate disbursement of US$94.3 million, bringing the total disbursements under the arrangement to US$330.3 million.

The release stated “in completing the reviews, the Board also approved a waiver for the non-observance of the end December 2010 performance criteria on the overall fiscal deficit and on the net change in the stock of domestic arrears. The Board also approved a rephrasing of disbursements”.

Mr. Naoyuki Shinohara, Deputy Managing Director and Acting Chair, on his part said, Ghana’s economy recovered in 2010, with strong growth and external performance.

He pointed out that “The authorities’ 2011 economic program focuses appropriately on restoring the momentum of fiscal consolidation.  The budget target for this year is ambitious and will require that a portion of Ghana’s initial oil production revenues be saved”.

He said “The adoption of quarterly electricity tariff reviews is an important step towards addressing risks to the budget from energy pricing.  For domestic petroleum products, it will be important to avoid losses to the budget when protection provided by hedging ends”.

Source : ISD