05:48 p.m May 03, 1999 Eastern

WASHINGTON, May 3 (Reuters) - The International Monetary Fund approved on Monday a $155 million loan for Ghana to support the West African country's economic reforms to the year 2001.

In a statement, the lending agency praised Ghana for reforming its economy and noted this had helped the economy to grow by 4.6 percent last year compared to 4.2 percent in 1997. Inflation fell to 16 percent a year in 1998 from 21 percent.

``Strong macroeconomic performance will depend on further fiscal consolidation and public sector reforms,'' the IMF said.

The 10-year loan, payable in seven instalments, is being made under the IMF's Enhanced Structural Adjustment Facility and charges an interest rate of 0.5 percent a year. It offers a 5-1/2 year grace period where no repayments are due.