The International Monetary Fund (IMF) has proposed a three-month extension of Ghana’s Extended Credit Facility (ECF) programme to allow additional time for the completion of reforms underpinning the sixth and final review.
According to the IMF, the proposed extension is intended to support policy discussions and provide sufficient time for the preparation and circulation of Executive Board documents related to the final review of the programme. If approved, the extension will move the end date of Ghana’s ECF arrangement from May 2026 to August 2026.
The proposal was disclosed in the IMF Staff Report released following the Executive Board’s approval of Ghana’s fifth programme review. The report stated that “the extension through August 16, 2026, would help reach an understanding on the policies supporting completion of the 6th review, while allowing sufficient time to prepare and circulate Board documents.”
Beyond the extension, the IMF is also proposing modifications to key elements of Ghana’s programme. These include adjustments to the Indicative Targets (ITs) and the Monetary Policy Consultation Clause (MPCC). The IMF explained that at end-March 2026, the primary balance and non-oil revenue ITs would be modified to reflect macroeconomic developments, while preserving the overall fiscal effort relative to GDP. Additionally, the MPCC bands for December 2025 and March 2026 are expected to be revised downward to better capture the effects of recent macroeconomic developments on disinflation trends.
Ghana’s 36-month ECF arrangement was approved in May 2023, with access equivalent to 303.8 per cent of quota, amounting to SDR 2.2419 billion, or about US$3 billion. So far, the country has secured approximately US$2.8 billion following the successful completion of the fifth review.
The IMF assessed Ghana’s programme implementation as broadly satisfactory, noting that all end-June 2025 performance criteria and indicative targets were met. The IMF also confirmed that three prior actions were completed for the fifth review, including the audit of 2024 payables, the cleansing of the taxpayer registry and ledger data, and the submission of the 2026 budget to Parliament in line with programme objectives.
Progress was also recorded on previously missed structural benchmarks from the fourth review. The IMF noted that the strategy for state-owned banks, initially due in April 2024, was eventually implemented in September 2025. The IMF further commended the authorities for advances in operationalising indicative targets, which have been rephased in three stages. The first stage, covering key aspects of missed structural benchmarks, has been reset as a new end-March 2026 structural benchmark.
Out of eleven structural benchmarks under the current review, four were met, two were implemented with delays, one was completed as a prior action, one is expected to be implemented by December 2025, and three were missed. The IMF observed that the end-June 2025 benchmark on merging certain statutory funds with their line ministries was not achieved, as the authorities opted for an alternative approach to reform earmarked funds.
Despite the progress made, the IMF cautioned that Ghana’s economic outlook remains exposed to significant risks. While the macroeconomic outlook is generally positive, the IMF warned that downside risks persist, particularly from potential deterioration in the external environment, commodity price volatility, and confidence effects arising from policy or reform slippages.
The IMF also raised concerns about delays in completing Ghana’s comprehensive debt restructuring, noting that such delays could heighten vulnerabilities. Additional risks identified include exposure to regional conflicts, terrorism, geoeconomic fragmentation, trade and investment shocks, and fluctuations in commodity prices. The IMF cautioned that domestic policy slippages could undermine macroeconomic stability and debt sustainability, complicating engagement with external creditors and development partners.
Furthermore, the IMF warned that delays in implementing the Energy Sector Recovery Programme could require additional budgetary resources and potentially trigger electricity and fuel supply disruptions.
On debt sustainability, the IMF acknowledged Ghana’s progress in reducing total debt and securing restructuring agreements with some bilateral creditors. However, it maintained that the country remains at high risk of debt distress.
Although all debt sustainability indicators remain below their respective thresholds under the baseline scenario, the IMF said it applied judgment to retain the high-risk classification, citing uncertainties around commodity prices, exchange rate movements, elevated rollover risks, and obligations to independent power producers.
