Ghana is likely to receive the next disbursement under its $918 million aid deal next month from the International Monetary Fund (IMF) after talks  on Friday ended up successfully, according to report from Reuters.

Sources close to the talks held  revealed that the  IMF staff evaluation mission, led by Joel Toujas-Bernate was broadly satisfied with Ghana performance as it has  remained  on track with agreed fiscal and institutional reforms aimed at restoring economic stability by the end of the three-year programme.

However, some fiscal data need to be agreed upon, one source said, adding that negotiations would continue.

"Broadly, there is progress and each side is satisfied. We believe this clears the way for the (IMF Executive) Board to conclude the third review successfully," it added.

Ghana, the world's second largest cocoa producer, which also exports gold and oil, signed an Extended Credit Facility deal with the IMF in April last year to bring down deficits, public debt and inflation.

This week's staff assessment mission was called to discuss updates of macroeconomic projections and firm up the fiscal outlook for the rest of 2016 after  parliament passed a law allowing central bank financing of the deficit, contrary to IMF's restrictions.

Parliament,earlier this month, passed the Bank of Ghana (BoG) Amendment Bill to allow the central bank to finance the government's budget deficit up to 5 percent of the previous year's revenue.

The IMF had demanded that the central bank be barred from deficit financing,with a window of 2% – 3% of BOG financing for liquidity management, but Ghana argues the objective of the amendment is to significantly strengthen the Central Bank’s functional autonomy, governance and ability to respond to banking sector crises.

terkpeh

Another source said Finance Minister Seth Terkper had demonstrated a commitment to maintaining zero financing as required under the IMF deal.

The meeting also discussed Ghana's public debt and debts owed by state enterprises, "and the Fund is fairly assured that the government was taking the right steps to resolve them", one official said.

The IMF executive board is expected to meet later this month to conclude Ghana's third review which started in May. The sources said it is likely the IMF will approve a fourth disbursement of around $115 million to the country.

By Abdul Malik/ghanaguardian.com