Government announces completion of IMF bailout programme

The Government of Ghana has announced the successful conclusion of its Extended Credit Facility (ECF) programme with the International Monetary Fund, describing the development as a major milestone in the country’s economic recovery and the restoration of macroeconomic stability and debt sustainability ahead of schedule.

According to a statement issued by the Minister for Information, Felix Kwakye Ofosu, the government under President John Dramani Mahama successfully brought the programme back on track in 2025 after what it described as a setback at the end of 2024.

The statement credited the turnaround to a series of fiscal and structural reforms, including expenditure rationalisation, frontloaded fiscal consolidation, and broader economic policy adjustments aimed at stabilising public finances and restoring investor confidence.

It added that these measures have contributed to notable macroeconomic improvements, including a significant reduction in inflation, a stronger performance of the Ghanaian cedi, and a marked decline in public debt as a share of Gross Domestic Product (GDP).

The government also reported that economic growth has rebounded strongly, supported by improved fiscal discipline and stronger external sector performance.

One of the key highlights of the recovery, according to the statement, is the improvement in Ghana’s sovereign credit ratings, which reportedly moved from “restricted default” (junk status) to a “B” rating with a positive outlook—representing multiple upgrades in a relatively short period.

Officials say this reflects stronger fiscal management, improved creditor relations, stabilised macroeconomic indicators, and renewed confidence in Ghana’s economy among international investors.

The statement further noted that Ghana’s gross international reserves have risen significantly, reaching approximately US$14.5 billion by February 2026—equivalent to nearly six months of import cover.

“These foreign exchange reserve buffers provide Ghana with the capacity to withstand external shocks and stand on its own feet,” the statement said.

Government described the announcement as marking the end of Ghana’s financial bailout relationship with the IMF, while expressing gratitude to citizens for their “sacrifices, resilience and forbearance” during the reform period.

Despite exiting the financial support programme, Ghana will continue its engagement with the IMF through the Policy Coordination Instrument (PCI), a non-financing arrangement designed to support ongoing reforms, strengthen policy credibility, and help mobilise external financing from development partners and private investors.

The PCI engagement follows discussions with an IMF staff mission led by Ruben Atoyan, which visited Accra from April 29 to May 15, 2026. The mission focused on the 2026 Article IV consultation, the sixth and final ECF review, and Ghana’s request for the new PCI arrangement.

During the visit, IMF officials met senior government representatives and a broad range of stakeholders to assess the country’s macroeconomic performance and reform trajectory.

The government reiterated its commitment to fiscal discipline, good governance, and policies aimed at creating a stable and attractive environment for both domestic and international investment.