The loan is to be drawn from the IMF's Rapid Credit Facility (RCF), a product of the Bretton Woods institution that provides concessionary financial assistance with with limited conditionalities to low-income countries (LICs).
In a statement announcing the approval of the loan facility yesterday, the IMF said although the government was proactive in addressing the issue, "additional support from other development partners will be required and critical to close the remaining external financing gap and ease budget constraints.”
The IMF also said would help "address the country’s urgent financing needs, improve confidence, and catalyse support from other international partners."
It added that the IMF would continue to monitor Ghana’s situation closely and was also ready to provide policy advice and further support as needed.
This is the second time in five years that the country has sought financial assistance from the IMF to help smoothen out fiscal roughages and bolster growth in the economy.