Ghana Is Seeking $1 Billion Loan

From IMF, Eurasia Group Says

Ghana is in talks to borrow about $1 billion from the International Monetary Fund under the Washington-based lender’s new relaxed credit-facility terms, Eurasia Group said.

The loan is required to correct imbalances in the West African nation’s economy, including a current account deficit in “low double digits,” inflation of 20 percent and a depreciating local currency, Sebastian Spio-Garbrah, Middle East and Africa analyst at New York-based Eurasia, said in an e- mailed report yesterday.

“The negative macroeconomic trends are now beginning to affect the country’s micro economy as many of Ghana’s over capitalized banks decelerate their expansion of credit,” Spio- Garbrah said.

Ghana, the world’s second-largest cocoa producer, said last month it will receive $1.2 billion of interest-free loans from the World Bank over the next three years to bolster its economy.

Economic growth is slowing as demand for its commodities drops amid the global financial crisis. The country also ranks as Africa’s second-biggest gold miner, after South Africa.