The International Monetary Fund (IMF) has applauded President John Dramani Mahama’s administration for taking bold corrective actions to keep Ghana’s Economic Credit Facility (ECF) programme on track.
In a statement issued after the Executive Board completed the Fourth Review under the Extended Credit Facility Arrangement, the Fund acknowledged the government’s commitment to restoring macroeconomic stability.
According to the IMF, the corrective measures, combined with ongoing reform efforts and an improved external position, are expected to support Ghana in achieving economic stabilisation, rebuilding resilience, and fostering higher and more inclusive growth.
“The authorities are strongly committed to restoring fiscal discipline and addressing the structural weaknesses that led to the slippages. They have passed a 2025 budget consistent with the programme’s objectives and enacted an enhanced fiscal responsibility framework,” the Fund stated.
It added, “Looking ahead, staying the course of fiscal adjustment and completing the debt restructuring are key to ensuring fiscal sustainability. This should be supported by continued efforts to enhance domestic revenue mobilisation and streamline non-priority expenditure, while creating space for development priorities and enhanced social safety nets.”
The IMF further emphasised that improving tax administration, strengthening expenditure controls, and boosting the efficiency of State-Owned Enterprises (SOEs) are essential to sustain progress.
“In this context, forcefully addressing the challenges in the energy sector and addressing related arrears are critical to contain fiscal risks,” the Fund cautioned.
It also commended the government for significant strides in rebuilding international reserves and taking decisive steps to curb inflation.
“The Bank of Ghana should maintain an appropriately tight monetary stance until inflation returns to target, reduce its footprint in the foreign exchange market, and allow for greater exchange rate flexibility, including by adopting a formal internal FX intervention policy framework,” the Fund recommended.
On the financial sector, the IMF noted progress in tackling undercapitalised banks but called for further reforms.
“A further strengthening of financial sector stability requires fully implementing the plan to strengthen the National Investment Bank, finalising the reform strategy to support state-owned banks’ viability and sustainability, and developing contingency plans to address weak banks that fail to recapitalize,” it said.
The Fund urged the Bank of Ghana to intensify efforts to improve the crisis management and resolution framework, enhance financial sector safety nets, and resolve legacy issues affecting specialised deposit-taking institutions.
Source: Joy Business
