By Reynt-Jan Sloet van Oldruitenborgh

ACCRA, April 16 (Reuters) - Ghana and the International Monetary Fund have concluded negotiations on a $181 million, three-year loan for the West African state, an IMF official said.

The IMF's Resident Representative in Ghana, Girma Begashaw, told Reuters in an interview on Thursday that the deal would lead to a reduction of Ghana's debt service in 1999 to 24 percent from 28 percent in 1998 and 32 percent in 1997.

The loan, expected to be approved by the IMF's executive board on May 3, will be disbursed over three years in tranches of $30 million every six months, he said.

The deal will translate into a net outflow of money from Ghana to the IMF this year of $17 million as the country will have to pay off debts amounting to $78 million.

Begashaw also praised Ghana's economic policies and said that the country's 1999 budget priorities are along the right lines.

``Things are coming up in Ghana. Ghana has done a lot,'' said the Ethiopian-born economist. ``Inflation came down from 70 percent (in 1995) to 15 percent (currently). I consider that a big achievement,'' he said.

Begashaw said he did not expect any big swings in the dollar-cedi exchange rate this year. The cedi has recently stabilised around 2,400 to the dollar after a fall of nearly 30 percent in 1997 and comparable falls in preceding years.

In its annual review of the economy last December, the IMF praised Ghana for its record on growth, inflation and the current account. However, it said the economy was fragile and that the government should accelerate structural reforms.

It said at the time early data pointed to 4.5 percent economic growth in 1998, below the government's 5.6 percent target but above the 4.2 percent growth rate recorded in 1997.

Inflation had slowed to 17.6 percent, from 27.9 percent in 1997.