Ghana ends IMF bailout programme, transitions to non-financing policy coordination instrument

The Government of Ghana has officially announced the successful conclusion of its Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF), marking what it describes as the end of the country’s financial bailout relationship with the Bretton Woods institution.

According to Felix Kwakye Ofosu, Spokesperson to the President and Minister for Government Communications, the achievement reflects the restoration of macroeconomic stability and debt sustainability ahead of the programme’s original timeline.

He explained that after the IMF-supported programme suffered setbacks at the end of 2024, the administration of John Dramani Mahama moved swiftly in 2025 to recalibrate the programme through aggressive fiscal consolidation measures, expenditure rationalisation and structural reforms.

According to him, the interventions have yielded significant economic gains, including a sharp decline in inflation, appreciation of the Ghana cedi, improved economic growth and a substantial reduction in the country’s debt-to-GDP ratio.

Felix Kwakye Ofosu further disclosed that Ghana’s sovereign credit ratings have improved from restricted default status to a “B with Positive Outlook,” representing five successive rating upgrades and signalling renewed investor confidence in the economy.

He noted that the improved ratings reflect stronger fiscal performance, improved relations with creditors, enhanced external reserves and increased market confidence.

The Minister also announced that Ghana’s gross international reserves had reached an estimated US$14.5 billion by February 2026, providing nearly six months of import cover.

According to him, the strong reserve position has equipped the country with sufficient buffers to withstand external economic shocks without reliance on emergency financial support.

He stressed that the latest development signals the definitive end of Ghana’s dependence on IMF financial bailout arrangements.

Felix Kwakye Ofosu expressed gratitude to the people of Ghana for what he described as their sacrifices, resilience and patience throughout the economic recovery process.

He also commended bilateral creditors, the Official Creditor Committee (OCC), domestic investors and external bondholders for their cooperation and support during the debt restructuring and recovery period.

Going forward, he revealed that Ghana will transition to the IMF’s Policy Coordination Instrument (PCI), which he described as a non-financing technical assistance framework designed to support countries implementing economic reforms.

According to him, unlike the ECF programme, the PCI does not involve direct financial support from the IMF but will provide technical assistance, policy guidance, market confidence and help catalyse fresh investments and financing opportunities from development partners and private investors.

He explained that the PCI arrangement would complement government’s broader ambition of securing investment-grade status for Ghana’s economy.

Felix Kwakye Ofosu stated that achieving investment-grade status would significantly reduce borrowing costs for both government and the private sector, attract long-term institutional investors, boost foreign direct investment and unlock cheaper financing for infrastructure and private sector expansion.

He added that the initiative is expected to support sustainable economic growth, job creation and improved living standards for Ghanaians.

The Minister reaffirmed the commitment of President John Mahama and his administration to prudent economic management, fiscal discipline, good governance and the creation of a favourable environment for domestic and international investment.

Story by: Joshua Kwabena Smith