The Executive Board of the International Monetary Fund (IMF) approved Ghana’s Fifth Programme Review on December 17, 2025 following meetings held in Washington District of Columbia paving the way for disbursement of approximately 380 million United States dollars to the Bank of Ghana (BoG). The decision comes after assessments showed Ghana met key targets and reforms under the IMF backed Extended Credit Facility (ECF) programme with funds expected to hit the Bank of Ghana account before the end of 2025.
The approval was based on significant progress Ghana has made under the programme in relation to the fifth review according to sources familiar with the decision. Market analysts stated that securing board approval would significantly boost donor and investor confidence especially as the cedi continues to stabilise. The IMF staff report is expected to be released in the coming hours providing further details on Ghana’s performance under the programme and any concerns the Fund may have about the economy.
Ghana reached a staff level agreement with the IMF on October 10, 2025 after a two week mission from September 29 to October 10 to assess economic developments and policy priorities. The agreement was subject to IMF Management approval and Executive Board consideration. Once the board review is completed Ghana gains access to Special Drawing Rights (SDR) 267.5 million approximately 385 million dollars bringing total IMF financial support since May 2023 to SDR 1,975.5 million about 2.83 billion dollars.
Ruben Atoyan who led the IMF mission to Accra stated that macroeconomic stabilisation in Ghana is taking root supported by stronger growth, easing inflation and improved external balances. Growth in the first half of 2025 was stronger than anticipated driven by robust services activity and agricultural output. International reserves accumulation continues to exceed program targets while the cedi appreciated markedly in the first half of the year according to the mission chief.
The IMF staff report commended Ghana’s progress in key reform areas including debt restructuring, fiscal consolidation, energy sector reforms, foreign exchange operations and financial sector resilience. Authorities are making progress on debt restructuring, fiscal consolidation, energy sector reforms, foreign exchange operations and financial sector resilience. The comprehensive debt restructuring is progressing well following the signing of a Memorandum of Understanding with the Official Creditor Committee under the Group of 20 (G20) Common Framework with bilateral agreements concluded with five countries.
Ghana’s economic outlook has strengthened with the IMF projecting growth at 4.8 percent in 2026 and inflation stabilising within the Bank of Ghana’s target range of eight percent plus or minus two percentage points. Fiscal performance has also improved with the government recording a primary surplus of 1.1 percent of Gross Domestic Product (GDP) in the first eight months of 2025 on track to meet the 1.5 percent year end target. Authorities plan to maintain the same surplus in 2026 under a new Fiscal Responsibility Framework.
Discussions with authorities centered on structural fiscal reforms to support fiscal adjustment and entrench discipline, boost domestic revenues, strengthen public financial and public investment management systems and bolster the credibility of Ghana’s fiscal framework. On the fiscal front the primary balance for the first eight months of 2025 posted a surplus of 1.1 percent of GDP on track to achieve the 1.5 percent of GDP target by year end. Authorities are committed to adopting a 2026 budget targeting a 1.5 percent of GDP primary surplus on a commitment basis in line with the recently adopted Fiscal Responsibility Framework.
Authorities have taken strong actions to support financial stability including by implementing the strategy to restructure and reform state owned banks, addressing gaps in the crisis management and resolution framework and implementing a multi pronged strategy to address non performing loans. The recapitalisation of state owned banks is expected to be completed by end 2025. The Bank of Ghana in collaboration with the Fund has developed a new framework for managing foreign exchange operations to reduce volatility and build reserves.
On monetary policy the central bank has cut its key interest rate by 650 basis points to 21.5 percent following a decline in inflation. The IMF stated the easing cycle is consistent with efforts to re anchor inflation expectations. Authorities are committed to strengthening governance and public sector efficiency with the Governance Diagnostic Assessment report completed and set for publication in the coming weeks. Efforts to improve transparency and oversight need to continue particularly in the management of state owned enterprises (SOEs) in the gold, cocoa and energy sectors.
Progress has been made on Ghana’s debt restructuring efforts. Following a memorandum of understanding with the Official Creditor Committee under the G20 Common Framework Ghana has finalised bilateral agreements with five creditor nations and continues talks with commercial creditors. The government is also addressing challenges in the energy sector with authorities having renegotiated legacy arrears and contracts with most independent power producers while introducing quarterly tariff adjustments to better reflect costs.
One critical requirement including the Audit Report on Arrears was completed and finalised in November 2025. The staff report considered by the IMF Board underwent extensive scrutiny across various IMF departments over the past few months. Sources close to the IMF in Washington District of Columbia stated that once a staff report is formally scheduled for board consideration it is usually challenging to reject as it would have met all required preconditions.
IC Research, an economic research firm noted that the IMF struck a more bullish tone in the fifth review compared to the steadily softer tone deployed over the first four reviews. The more upbeat tone of the fifth review is expected to facilitate a relatively smooth and favourable consideration by the IMF Executive Board enabling the disbursement of 385 million dollars to support budget operations and balance of payments. This expectation is based on Ghana’s current performance under the IMF programme and progress made in meeting agreed reforms.
The tone contrasts markedly with the steadily diminished optimism expressed during the first four reviews when the Fund’s assessment of Ghana’s performance softened from strong in the first review to generally strong in the second review and generally satisfactory in the third review. Unsurprisingly the fourth review reflected a marked deterioration with most indicators deviating from targets. The Fund described authorities’ actions to support financial sector stability as strong while indicating that authorities made notable strides in addressing longstanding challenges in the energy sector.
The disbursement will strengthen Ghana’s foreign exchange reserves ahead of the January 2026 Eurobond debt service estimated at 689 million dollars. This support is anticipated to enhance Ghana’s net international reserves which stood at 8.4 billion dollars in August 2025 equivalent to 3.6 months of import cover surpassing the programme target of three months by 2026. The three year Extended Credit Facility arrangement was approved by the IMF Executive Board for a total amount of SDR 2.242 billion about 3.2 billion dollars on May 17, 2023.
The facility aims to restore macroeconomic stability ensure debt sustainability and lay the foundation for inclusive growth. Finance Minister Cassiel Ato Baah Forson expressed gratitude to the people of Ghana for their patience and resilience thanking the IMF mission team for their constructive engagement and tireless work. IMF staff met with Finance Minister Forson, Bank of Ghana Governor Johnson Pandit Asiama and their teams as well as representatives from various government agencies and other stakeholders during the mission.
Ghana met all six quantitative performance criteria and four indicative targets for the period ending June 2025 demonstrating strong commitment to programme objectives. The authorities’ sustained implementation of reforms coupled with a favourable external environment and improved investor confidence have contributed to Ghana’s economic progress. The IMF expressed expectation for positive momentum to continue into 2026 contrasting with assessments during earlier reviews.
Looking ahead the IMF emphasized the importance of maintaining fiscal discipline continuing structural reforms and ensuring effective implementation of the debt restructuring process. The next review under the Extended Credit Facility is expected to take place in the first half of 2026 assessing Ghana’s continued progress toward macroeconomic stability and sustainable growth. The successful completion of the fifth review reinforces international confidence in Ghana’s economic management and reform trajectory positioning the country favourably for continued support from development partners.
