International Monetary Fund (IMF) has approved a $116 million loan to Ghana, to help it revive its economy and support balance payments. The loan is part of a $1 billion bailout plan agreed between Accra and the Washington-based institution in 2015.

With this new credit line, IMF would have disbursed a total of $465 million out of the billion planned by the bailout plan, the institution said in an e-mail statement on Wednesday.

The IMF approved the loan after reviewing monetary and economic reforms included in the plan. The Bretton Woods institution indicated that the funds should be transferred to the accounts of the Bank of Ghana within ten days from approval’s date.

Let’s recall that Ghana raised earlier this month $750 million via a Eurobond that matures over five years at a yield of 9.25%. Accra will use most of this money to refinance its debt.

After recording a GDP growth of about 7.5% over the 2003-2012 decade, relying on significant cocoa, gold and oil exports, Ghana has since 2013, started struggling against an inflation authorities can hardly contain, a greater budget deficit and GDP-debt ratio.

Schadrac Akinocho