President John Dramani Mahama has clarified that his administration has no immediate plans to extend Ghana’s current $3 billion Extended Credit Facility (ECF) with the International Monetary Fund (IMF).
Speaking in an interview with Bloomberg TV at the Munich Security Conference on Monday, Mahama stated that while an extension remains an option in the future, the government is committed to completing the existing program.
“We’ve not talked about an extension of the program. We are determined to continue with this program,” he asserted.
“If it’s necessary to look at additional funds or to extend the program, we’ll look at it, but for now we are determined to continue on this trajectory.”
Mahama outlined key proposals his government presented to the IMF, focusing on tax rationalization, debt management, and fiscal discipline to strengthen economic stability.
He criticized the previous administration’s taxation strategy, stating that excessive tax impositions had led to diminishing returns.
“Unfortunately, what the previous government had done was just to slap on more taxes, and we had gotten to a stage where the more taxes that were put on, the less revenue that came in,” he explained.
As part of ongoing reforms, the IMF has agreed to provide technical assistance in streamlining Ghana’s tax system to improve efficiency and compliance.
Mahama highlighted proactive measures to manage Ghana’s $15 billion domestic debt obligations in 2025, including reactivating the country’s sinking fund to support repayments.
Budget Plans and IMF Review
Looking ahead, Mahama emphasized the significance of Ghana’s upcoming budget presentation in March, which will incorporate insights from the IMF’s latest staff review.
The fourth IMF review is scheduled for April, and the government is aligning its fiscal policies with recommendations from the assessments. “The next review, which will be the fourth review, is due in April, but before that, we’ll present the budget in March,” he stated.
Despite the economic challenges, Mahama described Ghana’s relationship with the IMF as “cordial” and reiterated his administration’s commitment to ensuring the successful implementation of the ECF program.
He expressed optimism about the country’s economic trajectory, emphasizing the government’s focus on fiscal prudence, expenditure control, and sustainable revenue growth.
