- Ghana’s ECF-supported economic program has delivered substantial stabilization gains driven by strong reform efforts and significant progress in public debt restructuring, leading to sharply lower inflation, higher external buffers, improved confidence in the cedi, and marked debt sustainability gains.
- As stability takes hold, IMF engagement is shifting beyond the ECF toward reform-focused PCI. Discussions combined the 2026 Article IV consultation, final ECF review, and negotiations on a 36-month non-financing Policy Coordination Instrument (PCI), focusing on a credible fiscal path, resilience building, and structural reforms.
- Improvements in the debt trajectory created fiscal space to advance development objectives while preserving hard-won stabilization gains. This space is contingent on strong implementation of ambitious public financial management and structural reforms to mitigate risks associated with contingent liabilities.
- Amid external uncertainty and elevated fiscal risks –notably from SOEs and ongoing quasi-fiscal activities, the PCI reform agenda will prioritize stronger safeguards, transparency, and accountability to entrench policy credibility, rebuild buffers, and create space for priority investment and development spending.
An International Monetary Fund (IMF) staff team, led by Mr. Ruben Atoyan, visited Accra during April 29 – May 15, to discuss the 2026 Article IV consultation, the sixth and final review of the Extended Credit Facility (ECF), and the authorities’ request for a non-financing Policy Coordination Instrument (PCI). The team met with senior officials and a broad range of stakeholders.
At the end of the mission, Mr. Atoyan issued the following statement:
“Ghana’s ECF-supported program has delivered substantial stabilization gains. Inflation has declined rapidly, international reserves have been rebuilt, and confidence in the cedi has improved. Fiscal performance has strengthened markedly, with the primary surplus overperforming the program target in 2025, while the 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. Program performance has remained broadly satisfactory, with quantitative targets mostly met, while structural reforms were implemented with delays. Going forward, sustaining the reform momentum is critical.”
“The global environment remains uncertain. While direct spillovers from the war in the Middle East have so far been limited, the impact of the war is expected to be transmitted through higher energy, food, and fertilizer prices. The volatile external environment underscores the importance of preserving prudent policies and strengthening resilience.
“The authorities have made significant progress in advancing domestic and external debt restructuring, contributing to an improved debt trajectory. Bilateral debt relief agreements have been reached with about half of official creditors under the G20 Common Framework, with steady progress continuing toward agreements with the remaining official and commercial creditors. The successful resumption of domestic T-bond issuance earlier this year signals a return of investor confidence. Maintaining prudent borrowing, implementing the IMF‑supported debt rollover strategy for 2027–28, and strengthening debt management and transparency would help secure durable market access.
“As macroeconomic stability takes hold, IMF engagement is pivoting from crisis stabilization to consolidation, with a focus to help sustain reform momentum and build resilience beyond the current ECF program. It is in this regard that the authorities and the IMF have also reached staff-level agreement on policies that will be supported by a non-financing 36-month PCI aimed at: (i) sustaining growth-friendly fiscal adjustment; (ii) safeguarding debt sustainability; (iii) strengthening fiscal transparency and governance, particularly for state-owned enterprises; (iv) enhancing the monetary and exchange-rate policy framework; (v) reinforcing financial sector stability; and (vi) supporting economic diversification and inclusive growth.
“Recent improvements in the debt trajectory have created carefully calibrated fiscal space under the PCI. This space will help Ghana address pressing development needs, promote youth employment, and strengthen social spending, while preserving the achievement of the legislated 45 percent of GDP debt anchor by 2034. Staff assess that lowering the primary surplus to 0.5 percent of GDP from 2027 would remain consistent with safeguarding debt sustainability, provided that further progress is made in strengthening public financial management, including in the areas of fiscal risk management, state-owned enterprise governance, and quasi-fiscal activities.
“Maintaining a forward-looking, prudent monetary policy is instrumental to firmly anchoring inflation expectations. Efforts to ensure effective monetary policy transmission and confidence should focus on strengthening the central bank’s balance sheet. The losses associated with the Domestic Gold Purchase Programme (DGPP) underscore the importance of increasing transparency and limiting quasi-fiscal activities that weaken the central bank’s balance sheet. 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.
“Reinforcing financial sector stability remains a priority. Staff welcomed recent progress in strengthening banks’ recapitalization, unwinding temporary regulatory forbearance introduced during the debt exchange, and intensifying supervision and corrective actions for weaker institutions. Going forward, continued vigilance is essential to address the remaining vulnerabilities, including through effectively implementing reform and restructuring strategies for state-owned banks and specialized deposit-taking institutions, reducing high non-performing loans (NPLs), and supporting sustainable credit growth.
“Protecting public resources requires continued reform efforts in the energy and cocoa sectors. In the energy sector, priority should be given to tackling distribution and collection losses at the Electricity Company of Ghana (ECG), including by finalizing the private sector participation in distribution sector, enhancing payment discipline, clearing legacy arrears, and reducing generation costs. In the cocoa sector, recent interventions have provided some relief, but deeper reforms are needed to address longstanding vulnerabilities. Priority should be given to strengthening the legislative framework to streamline costs, including through more frequent farmgate price adjustments, improve efficiency, and ensure Cocobod’s long-term financial sustainability.
“Eliminating gaps in the anti‑corruption framework would strengthen Ghana’s governance record and support investor confidence. A meaningful public disclosure of standardized asset declarations, subject to appropriate privacy safeguards, would be a key step in this direction.
“The IMF staff team commends the resilience and determination of the Ghanaian people and thanks the authorities for their constructive engagement and candid policy discussions. Avoiding past policy slippages—including recurring cycles of fiscal imbalances, rising debt, weak buffers, and reform reversals—will be critical to safeguarding the hard-earned success. Sustaining a prudent policy mix and accelerating structural reforms remain essential to strengthen resilience, build confidence, and support inclusive, private-sector-led growth. To entrench stability and support stronger, more inclusive growth and job creation, post-ECF policies should be anchored in a robust institutional framework and sustained reform implementation.”
Distributed by APO Group on behalf of International Monetary Fund (IMF).
