The International Monetary Fund (IMF) has described Ghana’s performance under its Extended Credit Facility (ECF) programme as “broadly satisfactory,” citing significant progress in restoring macroeconomic stability, strengthening public finances and improving debt sustainability.
In its assessment following the successful completion of Ghana’s three-year ECF-supported programme, the Fund said sustained government reforms, supported by favourable commodity prices, had produced substantial economic gains.
According to the IMF, inflation has declined sharply, international reserves have exceeded programme targets and the country’s fiscal position has improved markedly, with the primary balance shifting from a substantial deficit to a surplus.
The Fund also noted that Ghana’s comprehensive debt restructuring process is largely complete, resulting in the country’s risk of debt distress being reduced to a moderate level.
“Inflation has fallen sharply, international reserves have been rebuilt beyond programme targets, and the primary fiscal balance has swung from a large deficit to a surplus. The comprehensive debt restructuring is largely complete, and Ghana’s risk of debt distress has returned to moderate,” the IMF stated.
It stressed, however, that continued implementation of reforms under the newly approved Policy Coordination Instrument (PCI) would be essential to consolidate the gains achieved and address the country’s remaining economic vulnerabilities.
The IMF identified fiscal discipline as a critical priority, urging the government to sustain prudent fiscal management while addressing Ghana’s development, social and security needs without compromising debt sustainability.
To achieve this, the Fund called for stronger domestic revenue mobilisation, improvements in public financial and public investment management, enhanced oversight of state-owned enterprises—particularly in the energy and cocoa sectors—and expanded social protection for vulnerable groups.
On monetary policy, the IMF commended the Bank of Ghana for successfully steering the disinflation process and rebuilding the country’s external reserves while cautiously easing its policy stance.
It emphasised that preserving the credibility of monetary policy would require safeguarding the central bank’s independence, fully transferring the domestic gold purchase programme to GoldBod, permanently ending quasi-fiscal activities and implementing the Bank of Ghana’s recapitalisation plan.
The Fund further observed that although the resilience of Ghana’s financial sector has improved, vulnerabilities remain within some state-owned and private banks as well as specialised deposit-taking institutions.
It therefore urged the authorities to take decisive corrective measures, strengthen regulatory supervision and complete the country’s financial sector crisis management and resolution framework to safeguard financial stability.
The IMF also underscored the importance of sustaining governance reforms, including the timely passage of the reformed Conduct of Public Officials Bill, to enhance transparency, accountability and public confidence in public institutions.
The Fund said maintaining the momentum of reforms under the new Policy Coordination Instrument would be crucial to preserving macroeconomic stability and supporting Ghana’s long-term economic growth prospects.
Source: businesspostonline
