IMF Hails Ghana's Economic Progress

...Approves US $65 Million

The International Monetary Fund announced on Friday that it has approved a US $65 million disbursement for poverty reduction programmes in Ghana. It also said, in a news release, that the country had made significant progress during 2001 in stabilising its economy.

The government of President John Kufuor made progress in restoring conditions for economic growth and poverty reduction, cut inflation substantially, and stabilised the exchange rate, it said.

"Progress on the structural front was more limited, but important measures were implemented with respect to petroleum pricing, restructuring of the Tema Oil Refinery debt, preparation of a strategy for moving towards full-cost recovery for utilities, and strengthened independence of the central bank," the fund said. "Preparation of a poverty reduction strategy paper, involving all stakeholders is proceeding satisfactorily, with completion expected in the first half of 2002."

It added: "Passage of a 2002 budget is expected to consolidate stabilization gains and to lay the foundation for continued recovery, and an acceleration in poverty reduction. The authorities are planning new measures to boost revenue and to place public finances on a permanently sound footing."