Ghana secures $180 mln World Bank loan

05:29 p.m May 27, 1999 Eastern

WASHINGTON, May 27 (Reuters) - The World Bank said on Thursday it has approved a $180 million loan for Ghana to support economic reforms which should help reduce poverty.

The Bank said in a statement the 40-year loan, being made through the International Development Association, supports the goal of transforming the African nation into a medium-income country by the middle of the next decade. The IDA is the Bank's arm for lending to the poorest countries.

The loan builds on a previous loan and is for use to build on recent gains in economic stability by supporting reforms in the cocoa, energy and banking sectors.

The Bank also said it hopes the money will help support a downward trend in inflation and interest rates and help reduce a heavy domestic debt burden thereby allowing for increased spending on social programmes such as health and education.

The Bank said reform of the cocoa sector, which supports about 800,000 families, will help boost exports and incomes among the rural community. It said reform in the energy sector would fuel private-sector participation and enhance the prospects for private investments in the sector.