Washington, United States - The International Monetary Fund's board announced Friday that it has approved the first review of a 36-month loan agreement with Ghana, unlocking $600 million in much-needed funds.
Facing its worst economic crisis in decades, Ghana agreed to the $3 billion loan agreement with the IMF to help shore up its public finances and better manage its heavy debt load.
Ghana reached an agreement with external creditors to restructure its debts last week, paving the way for the much-needed disbursement of funds on Friday.
"Ghana's performance under the program has been strong," the IMF announced in a statement confirming the executive board's decision.
"All quantitative performance criteria for the first review and almost all indicative targets and structural benchmarks were met.
The disbursement announced Friday brings the total lent to Ghana under the program to around $1.2 billion.
Ghana's economic outlook will be a major part of campaigning for the presidential election in December when President Nana Akufo-Addo's New Patriotic Party will seek an unprecedented third term in office.
Speaking at a press conference after the board agreement was announced, Finance Minister Ken Ofori-Atta called the decision "a resounding affirmation that the program is advancing steadily and our reform trajectory remains steadfast."
The Ghanaian government expects the IMF board's approval will pave the way for a $300 million disbursement from the World Bank after its next meeting on the issue on January 23, he said.
"In addition, we expect the World Bank to approve $250 million to support the Ghana Financial Stability Fund," he added, referring to a Ghanaian government fund set up to provide liquidity support to the financial sector.