IMF Lends $119 Million to Ghana

Warns on Public Spending Cuts

The International Monetary Fund approved a $119 million loan to Ghana to help support the economy, while warning that the government must rein in public spending.

The loan will bring Ghana’s total disbursements under the Extended Credit Facility to $218 million, the Washington-based lender said in a statement on its website.

Ghana, which is set to become Africa’s newest oil exporter later this year, is aiming to cut its budget deficit to 7.5 percent of gross domestic product this year from about 10.2 percent in 2009.

Reducing the deficit “will require tight controls over spending, including public administration costs, and strengthening revenue mobilization,” the IMF said. “The government should stand ready to tighten fiscal policies promptly, if the need arises.”