BY Daniel Bampoe
The National Democratic Congress led government has formally appealed to the International Monetary Fund (IMF) for an extension of its ongoing bailout programme, citing the need for additional time to consolidate macroeconomic gains, complete key reforms, and stabilise the country’s fiscal outlook amid lingering economic pressures.
In a formal communication addressed to the IMF, the Minister for Finance, Dr. Cassiel Ato Forson, together with the Governor of the Bank of Ghana, Dr. Johnson Pandit Asiama, outlined the government’s commitment to the reform programme under the Extended Credit Facility (ECF).
The request comes as Ghana continues efforts to restore debt sustainability following years of fiscal stress triggered by high debt levels, currency depreciation, and global economic shocks.
According to the submission, the government is seeking approval for the completion of the fifth review of the IMF-supported programme, alongside a request for a disbursement of SDR 267.5 million.
The authorities further proposed an extension of the programme by an additional three months, beyond its original expiration in May 2026, to allow sufficient time for the completion of the final review and the consolidation of ongoing reforms.
The request follows what the government describes as significant progress in implementing agreed policy measures under the Memorandum of Economic and Financial Policies (MEFP).
These measures include fiscal consolidation, improved public financial management, debt restructuring efforts, and structural reforms aimed at strengthening revenue mobilisation and restoring macroeconomic stability.
In the letter, the government acknowledged that recent macroeconomic developments, including slower-than-expected nominal GDP growth, have affected key fiscal indicators.
As a result, it has requested adjustments to the nominal fiscal targets—particularly the primary balance and non-oil revenue benchmarks—set for end-March 2026.
According to the authorities, these revisions are necessary to ensure that fiscal effort remains aligned with economic realities while preserving the credibility of the overall adjustment programme.
The authorities also requested revisions to the Monetary Policy Consultation Clause (MPCC) bands through March 2026, explaining that evolving inflation dynamics and disinflation trends necessitate a recalibration of monetary targets.
These adjustments, they argue, will help ensure policy consistency while maintaining the broader objective of price stability.
Under the proposed framework, Ghana’s IMF-supported programme will continue to be monitored through semi-annual reviews, with clearly defined quantitative performance criteria, indicative targets, and structural benchmarks.
These benchmarks cover critical reform areas, including public financial management, debt transparency, revenue administration, and governance reforms.
Continuous performance criteria related to exchange restrictions and multiple currency practices will also remain in force under Article VIII of the IMF’s Articles of Agreement.
The government further reaffirmed its commitment to full transparency, pledging to provide the IMF with timely and comprehensive data required to monitor programme implementation.
It also reiterated its readiness to engage in prior consultations with the Fund should additional policy measures become necessary to safeguard macroeconomic stability.
In line with its transparency obligations, the government confirmed that all documents submitted to the IMF Executive Board—including the Memorandum of Economic and Financial Policies and the Technical Memorandum of Understanding—would be made public.
The renewed engagement with the IMF comes against the backdrop of the ongoing debt restructuring efforts and broader economic recovery agenda.
Since entering the IMF programme, the country has taken steps to restore fiscal discipline, stabilize the cedi, and rebuild investor confidence, although challenges persist due to global economic headwinds and domestic fiscal constraints.
