IMF Completes Fifth Review of Ghana Credit Facility

The International Monetary Fund (IMF) has completed its fifth review of Ghana’s 39-month Extended Credit Facility (ECF) Arrangement, paving the way for an immediate disbursement of approximately US$385 million.

This latest development, announced today, signifies continued satisfaction with Ghana’s economic performance under the programme, despite acknowledged delays in implementing certain structural reforms. The disbursement brings Ghana’s total receipts under the arrangement to about US$2.8 billion since its approval in May 2023.

Macroeconomic stability is steadily improving, with Ghana witnessing strong economic growth and a return to single-digit inflation for the first time since 2021. The country’s fiscal position and external balance have also shown marked improvements, largely due to progress made in debt restructuring.

“These gains reflect the authorities’ strong program ownership, favorable external developments, and improved investor confidence,” the IMF noted in a statement.

Ghana’s economic trajectory has exceeded expectations through September 2025, fueled by robust performance in the services and agriculture sectors. The cedi has also appreciated in value while international reserves have increased. These positive indicators demonstrate the impact of the IMF-backed reforms, particularly after addressing policy challenges faced last year.

According to the IMF, all quantitative performance criteria and indicative targets for the fifth review were successfully met. Good progress has been documented in crucial structural reforms, even with some setbacks.

Significant headway has been made on public debt restructuring, with bilateral agreements already secured with several Official Creditor Committee members. Agreements in Principle have also been finalized with other external commercial creditors. Discussions continue with the remaining creditors to ensure a restructuring process consistent with program parameters.

The nation remains on course to achieve a primary surplus of 1.5% of Gross Domestic Product (GDP) by the end of the year. The 2026 budget, recently submitted to Parliament, aligns with fiscal program objectives and the new fiscal responsibility framework, and also incorporates developmental and security requirements. This will primarily be driven by improved revenue collection and rationalization of expenditure, with particular attention paid to protecting vulnerable populations.

With easing inflationary pressures and the cedi’s recent gains, the Bank of Ghana (BoG) has begun a cautious monetary easing cycle. The IMF advises that any further easing should be gradual and contingent on data analysis. The BoG, in collaboration with the IMF, has implemented a new framework for foreign exchange operations designed to stabilize the market and accumulate reserves.

Efforts to strengthen financial stability are also underway, including restructuring and reforming state-owned banks and addressing gaps in crisis management procedures. A comprehensive approach is being pursued to reduce the burden of non-performing loans.

Furthermore, progress has been made in improving governance and public sector efficiency, aligned with the recent Governance Diagnostic Assessment report. The IMF has called for continued improvements in transparency and oversight, especially concerning State-Owned Enterprises (SOEs) in vital sectors such as gold, cocoa, and energy.

“Continued reform efforts remain essential to maintain macroeconomic stability and debt sustainability, while addressing longstanding structural vulnerabilities,” stated Deputy Managing Director Bo Li of the IMF following the Executive Board’s discussion.

Mr. Li also emphasized the need to enhance domestic revenue mobilization and streamline expenditure, alongside reinforcing tax administration, expenditure control, and SOE governance. Addressing challenges in the energy sector, particularly outstanding arrears, remains critical for containing fiscal risks. The IMF also encouraged strengthening central bank independence and deepening foreign exchange markets.

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