WASHINGTON, Aug 22 (Reuters) – The International Monetary Fund has approved a new $35.1 million payment from its loan to Ghana, but said the money would be released pending the World Bank’s review of the African country’s plan to cut poverty.
The IMF said the World Bank Board would meet on Thursday to consider Ghana’s so-called Poverty Reduction Strategy Paper.
An IMF statement released late on Tuesday said the IMF’s board had agreed in principle to release $35.1 million from a $93 million loan approved in 1999, but a final decision would be made after the World Bank meeting.
IMF Deputy Managing Director Educardo Aninat commended the Ghanaian authorities for adjustment efforts they undertook to tighten monetary policy, stabilize the exchange rate and keep inflation under control after a severe trade shock dampened economic performance.
But he said the review of the Ghana loan had highlighted the need to continue fiscal restraint, while improving budget management and administration of the country’s tax laws.
