Ghana secures $1bn IMF loan in bid to revive economy

Ghana has struck a deal with the International Monetary Fund aimed at stabilising its troubled economy.

The three-year deal follows months of talks prompted by the government’s failure to meet targets on inflation, the budget deficit and growth.

The Ghanaian economy had been expanding at about 8% annually on the back of gold, cocoa and oil exports.

However, growth fell to 4.2% in 2014 as commodity prices fell and the currency depreciated.

The IMF will provide Ghana with loans worth about $940m in instalments, beginning in April.

Joel Toujas-Bernate, head of the IMF’s Africa division, said the short-term priority was to stabilise Ghana’s economy.

Finance minister Seth Terkper said the agreement was expected to “make markets to react more positively” and encourage more support from donors.

The IMF now expects inflation in Ghana to fall to between 11% and 12% by the end of the year.

Growth should come in at 3.5% in 2015, it said, rising to between 5% and 6% by 2017.