The International Monetary Fund (IMF) said Friday it had reached a staff-level agreement with Ghana on the sixth and final review of the country’s Extended Credit Facility (ECF) programme, while also agreeing on a new 36-month Policy Coordination Instrument (PCI) aimed at sustaining reforms after the bailout programme ends.
The agreement follows a two-week IMF mission to Accra led by mission chief Ruben Atoyan and marks a transition in the Fund’s engagement with Ghana from crisis management toward longer-term economic reforms and policy coordination.
In a statement issued at the end of the mission, the IMF said Ghana’s ECF-supported programme had delivered “substantial stabilization gains” driven by fiscal reforms and progress in debt restructuring.
According to the Fund, inflation has declined sharply, foreign exchange reserves have strengthened and confidence in the cedi has improved significantly since the start of the programme.
The IMF also said Ghana’s fiscal performance had exceeded expectations, with the primary surplus outperforming programme targets in 2025 while the country’s public debt ratio declined sharply.
“Growth exceeded expectations in 2025, supported by broad-based activity, and the external position strengthened on the back of historically high gold export receipts,” Atoyan said.
The Fund noted that programme implementation had remained broadly satisfactory despite delays in some structural reforms.
Ghana entered the IMF bailout programme after suffering a severe economic crisis marked by soaring inflation, rapid currency depreciation and loss of access to international capital markets.
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The IMF said significant progress had also been made in Ghana’s debt restructuring process under the G20 Common Framework, with agreements reached with about half of official bilateral creditors while negotiations continue with remaining creditors and commercial bondholders.
The successful return to domestic treasury bond issuance earlier this year was cited by the IMF as evidence of improving investor confidence.
As the ECF programme concludes, Ghana and the IMF have agreed on a non-financing PCI arrangement that will focus on sustaining reforms without additional IMF funding.
The new programme will prioritize growth-friendly fiscal adjustment, debt sustainability, stronger governance of state-owned enterprises, improved fiscal transparency, financial sector stability and policies aimed at economic diversification and inclusive growth.
The IMF said recent improvements in Ghana’s debt outlook had created limited fiscal space that could be used to support development spending, youth employment and social protection while maintaining debt sustainability targets.
Under the PCI framework, staff assessed that Ghana could reduce its primary fiscal surplus target to 0.5% of GDP from 2027 while still remaining on track to achieve its legislated debt anchor of 45% of GDP by 2034.
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However, the Fund warned that maintaining debt sustainability would depend on continued reforms in public financial management, fiscal risk oversight and the governance of state-owned enterprises.
The IMF also raised concerns over quasi-fiscal activities linked to the Bank of Ghana’s Domestic Gold Purchase Programme, warning that associated losses could weaken the central bank’s balance sheet if not properly managed.
“Efforts to protect the Bank of Ghana’s balance sheet from DGPP-related quasi-fiscal risks and budget recognition of future costs would help enhance accountability and oversight,” the Fund said.
The IMF further stressed the need to strengthen Ghana’s financial sector by addressing vulnerabilities in weaker institutions, reducing non-performing loans and continuing recapitalization efforts within the banking system.
The Fund also called for deeper reforms in the energy and cocoa sectors, identifying the Electricity Company of Ghana and Cocobod as major sources of fiscal risk.
In the energy sector, the IMF urged authorities to improve revenue collection, reduce technical losses and finalize private sector participation in electricity distribution.
For the cocoa sector, the Fund said reforms were needed to improve efficiency, streamline costs and strengthen Cocobod’s long-term financial sustainability.
The IMF additionally called for stronger anti-corruption measures, including improved public disclosure of asset declarations, arguing that governance reforms would help strengthen investor confidence.
The staff-level agreement remains subject to approval by IMF management and the Fund’s Executive Board.
