The International Monetary Fund (IMF) and the World Bank have provided Ghana with a debt relief of about 3.5 billion dollars under the enhanced HIPC initiative. The funds are to be channelled into education, health and agriculture.

This was announced by the visiting Managing Director of the IMF, Mr Horst Kohler when he delivered a paper on the IMF's Partnership with African member countries in Accra on Friday.

He said the two institutions had assisted 23 African countries, which qualified for 33 billion dollars of debt relief. Mr. Kohler said the institutions would intensify their efforts to help African countries develop sound financial sectors and obtain access to international investment capital.

He said for the maximum contribution to sustained growth and poverty reduction, it would be important to respond creatively to the needs of small and medium-sized enterprises and the rural sector, including thorough soundly-managed micro finance institutions.

He commended the government for the impressive turn around in economic performances over the past year, adding, "by bringing the budget deficit and money creation under control, the government has put an end to severe foreign exchange shortages, rapid currency depreciation and surging inflation."

Mr. Kohler said government has successfully steered the economy out of crisis and trying to engage all parts of society in defining an ambitious strategy for growth and poverty reduction.