- The IMF Executive Board today completed the fifth review of Ghana's 39-month Extended Credit Facility Arrangement. This allows for the immediate disbursement of about US$385 million (SDR 267.5 million).
- Ghana's performance under the program has been broadly satisfactory, despite some delays in implementing complex structural reforms.
- Macroeconomic stabilization is gaining momentum, with strong growth and single-digit inflation for the first time since 2021. The fiscal and external positions have improved, and good progress has been made on debt restructuring. These gains reflect the authorities' strong program ownership, favorable external developments, and improved investor confidence.
- Steadfast implementation of the policy and reform agenda remains essential to fully restore macroeconomic stability and debt sustainability.
Washington, DC: The Executive Board of the International Monetary Fund (IMF) today completed the fifth review of the US$3 billion, 39-month Extended Credit Facility (ECF) Arrangement, which was approved by the Board in May 2023 . Completion of this review allows for an immediate disbursement of about US$385 million (SDR 267.5 million), bringing Ghana's total disbursements under the arrangement to about US$2.8 billion.
Ghana's IMF-supported reforms are yielding results after last year's policy slippages. Growth through September 2025 exceeded expectations, driven by strong services and agriculture. Inflation is now within the Bank of Ghana's target range, and the external sector strengthened on robust gold and cocoa exports. Reserves accumulation surpassed ECF targets, the cedi appreciated, and Ghana's debt trajectory improved significantly.
Ghana's performance under the IMF-supported program has been generally satisfactory. All quantitative performance criteria and indicative targets for the fifth review were met. Notwithstanding some delays, good progress has also been made on the key structural reforms, including overdue measures from previous reviews.
The Ghanaian authorities have continued to make significant headways on their public debt restructuring. They have signed bilateral debt relief agreements with many members of Ghana's Official Creditor Committee and finalized several Agreements in Principle with other external commercial creditors. The authorities have also intensified engagement with their remaining external commercial creditors on a restructuring consistent with program parameters and comparability of treatment.
Ghana is on track to achieve a primary surplus of 1.5% of GDP by year-end. The 2026 budget, submitted to Parliament, aligns with fiscal program objectives and the new fiscal responsibility framework, while accommodating developmental and security needs. This will be driven by revenue mobilization and expenditure rationalization, with safeguards for vulnerable groups. Sustaining fiscal discipline requires stronger revenue administration, improved public financial management, and better oversight of State-Owned Enterprises, which pose significant fiscal risks.
With inflation pressures subsiding and the recent appreciation of the Cedi, the Bank of Ghana (BoG) has appropriately begun a cautious monetary easing cycle. Any further easing should remain gradual and data dependent. In collaboration with the Fund staff, the BoG has developed and implemented a new structured foreign exchange operations framework to intermediate FX flows and smooth excessive market volatility, while accumulating international reserves.
The authorities have taken decisive steps to safeguard financial stability, including by implementing the strategy to restructure and reform state-owned banks, closing gaps in the crisis management and resolution framework, and pursuing a multi-pronged approach to reduce non-performing loans.
Important progress has been made to strengthen Ghana's governance and public sector efficiency in line with the recently published Governance Diagnostic Assessment report. Efforts to improve transparency and oversight need to continue, particularly related to public disclosure requirements and management of SOEs in the gold, cocoa, and energy sectors.
Ambitious structural reforms to help create an environment more conducive to private sector investment, and to enhance governance and transparency remain key to boosting the economy's potential and underpinning sustainable job creation.
Following the Executive Board discussion on Ghana, Deputy Managing Director Bo Li issued the following statement:
"Ghana's performance under its ECF-supported reform program has been generally satisfactory. The authorities have shown strong program ownership by decisively implementing ambitious corrective actions after the 2024 policy slippages. These efforts, coupled with structural reforms, have driven a stronger-than-anticipated recovery in growth, brought inflation within the Bank of Ghana's target range, and supported robust reserve accumulation. Going forward, continued reform efforts remain essential to maintain macroeconomic stability and debt sustainability, while addressing longstanding structural vulnerabilities.
"Ghana has made progress in strengthening its fiscal position. Looking ahead, staying the course of fiscal policy adjustment and creating room to enhance social programs is paramount to put public finances on a sustainable path and reduce financing needs, while cushioning vulnerable households from the impact of fiscal adjustment. Continued efforts to enhance domestic revenue mobilization and streamline primary expenditure are key in this regard and should be supported by steadfast implementation of reforms to strengthen tax administration, expenditure control and arrears management, and SOEs' efficiency and governance. Forcefully addressing the challenges in the energy sector—including related to arrears—is critical to contain fiscal risks.
"The Bank of Ghana has successfully brought inflation within its target range and rebuilt international reserve buffers, while cautiously easing the monetary policy stance. Looking ahead, strengthening central bank independence, discontinuing quasi-fiscal activities, and deepening FX markets, while reducing the Bank of Ghana's footprint, remain priorities.
"The authorities have made progress in bolstering financial stability by continuing to implement banks' recapitalization plans and initiating the recapitalization of key state-owned banks. However, vulnerabilities persist. To address these challenges sustainably, it is critical to strengthen governance in state-owned banks, fully leverage the bank resolution framework, develop contingency plans for banks that fail to recapitalize, ensure cost-effective resolution of legacy issues, and implement robust supervisory strategies to enhance credit and operational risk management.
"The publication of the IMF Governance Diagnostic Assessment is most welcome, but more is needed to strengthen anti-corruption frameworks and bolster governance and public trust, including by fully aligning Ghana's asset declaration to best practices."
Ghana: Selected Economic and Financial Indicators, 2023–30
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