Ghana Exits IMF Programme, Moves To Non-Financing Policy Support Arrangement

The Government of Ghana has officially ended its Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF)

The government is now focused on transitioning to a new non-financing Policy Coordination Instrument (PCI) arrangement aimed at sustaining economic reforms and stability.

The decision follows the conclusion of an IMF staff mission to Accra from April 29 to May 15 for the 2026 Article IV consultation, the sixth and final review of the ECF programme, and discussions on Ghana’s request for the new policy arrangement.

In a statement issued at the end of the mission, IMF mission chief Ruben Atoyan said Ghana’s IMF-supported programme had produced “substantial stabilization gains,” citing a rapid decline in inflation, improved confidence in the cedi, stronger fiscal performance, and the rebuilding of international reserves.

According to the IMF, Ghana’s economy also recorded stronger-than-expected growth in 2025, supported by broad-based economic activity and historically high gold export receipts.

The Fund noted that the country’s public debt ratio had declined sharply while the primary fiscal surplus exceeded programme targets in 2025.

“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 programme,” the statement said.

The IMF said it had reached a staff-level agreement with Ghanaian authorities on a new 36-month PCI programme that would not involve direct financial support but would instead focus on policy coordination and reform implementation.

The new arrangement is expected to support growth-friendly fiscal adjustment, debt sustainability, fiscal transparency, monetary and exchange-rate reforms, financial sector stability, and economic diversification.

The Fund said recent improvements in Ghana’s debt trajectory had created “carefully calibrated fiscal space” that could help government address development needs, youth unemployment, and social spending while maintaining its debt sustainability targets.

The IMF also warned that the global economic environment remained uncertain, noting that the ongoing conflict in the Middle East could affect Ghana indirectly through higher energy, food, and fertiliser prices.

On debt restructuring, the IMF said Ghana had made significant progress with bilateral debt relief agreements reached with about half of official creditors under the G20 Common Framework, while negotiations with remaining creditors continued.

It added that the successful resumption of domestic treasury bond issuance earlier this year signalled renewed investor confidence in the economy.

The IMF further urged Ghana to maintain prudent borrowing, strengthen debt management and transparency, and continue reforms in key sectors, including energy and cocoa.

In the energy sector, the Fund called for measures to reduce distribution and collection losses at the Electricity Company of Ghana, clear legacy arrears, and lower generation costs.

For the cocoa sector, the IMF said deeper reforms were needed to improve efficiency and ensure the long-term financial sustainability of Ghana Cocoa Board.

The Fund also stressed the need to strengthen Ghana’s anti-corruption framework, including public disclosure of standardised asset declarations, to improve governance and investor confidence.

While commending the resilience of Ghanaians and the government’s engagement during the programme, the IMF cautioned against policy reversals and fiscal slippages that could undermine the gains achieved under the bailout programme.

It said sustaining prudent economic policies and accelerating structural reforms would be critical to supporting long-term economic resilience, private-sector-led growth, and job creation.