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The International Monetary Fund (IMF) has welcomed corrective measures implemented by the Bank of Ghana (BoG) following a temporary breach of limits on central bank financing to the government.
The Fund said the action helped pave the way for approval of Ghana’s final US$371 million disbursement under the Extended Credit Facility (ECF), bringing total disbursements under the programme to US$3 billion.
The IMF disclosed this in its assessment following the sixth review of Ghana’s ECF-supported programme.
According to the Fund, the BoG breached the end-December 2025 performance criterion on the ceiling for claims on the central government and public entities.
The IMF said the breach was temporary and relatively small, attributing it to cost-sharing arrangements linked to the Domestic Gold Purchase Programme (DGPP). The Fund consequently granted Ghana a waiver as part of the sixth review.
Following the deviation, the BoG introduced corrective measures to restore compliance with the programme requirements.
In May 2026, the central bank reaffirmed its commitment to maintaining zero monetary financing of government budgets, stressing that it would not finance fiscal deficits through money creation as part of efforts to preserve price stability and protect the value of the cedi.
The BoG said monetary financing of fiscal deficits had previously contributed to inflation, currency depreciation and declining purchasing power for households.
“Adherence to zero monetary financing strengthens policy credibility and supports sustainable economic recovery, particularly by preserving the purchasing power of incomes and protecting vulnerable households,” the Bank said.
While the IMF described Ghana’s overall performance under the ECF programme as broadly satisfactory, it identified several areas requiring continued policy attention under the new Policy Coordination Instrument (PCI).
The Fund said these measures would be important for consolidating macroeconomic stability and supporting inclusive, private sector-led growth.
IMF urges stronger financial sector oversight
The IMF noted that resilience across Ghana’s financial sector had improved but warned that vulnerabilities remained among some state-owned and private banks, as well as specialised deposit-taking institutions.
It said sustained regulatory supervision, decisive corrective action and completion of a comprehensive crisis management and resolution framework would be critical to safeguarding financial stability and strengthening credit intermediation.
The Fund also welcomed the BoG’s cautious monetary policy easing as inflation moved back into the target range. However, it stressed that maintaining policy credibility would depend on preserving the central bank’s independence and permanently ending quasi-fiscal activities.
The IMF further called for the transfer of the gold purchase programme to the Ghana Gold Board (GoldBod) and urged Ghanaian authorities to meet their commitment to recapitalise the BoG by 2032.
On fiscal policy, the Fund urged the government to implement the planned reduction in the primary surplus to 0.5 per cent from 2027 in line with debt sustainability objectives.
It also called for stronger oversight of state-owned enterprises operating in the energy and cocoa sectors as part of efforts to strengthen public financial management and limit fiscal risks.
The IMF further urged the timely implementation of a reformed asset declaration framework and the passage of the revised Conduct of Public Officials Bill to strengthen transparency, governance and public confidence.
“Ghana’s stabilisation gains are real but locking them in will require continued discipline on fiscal policy, financial supervision, debt management, and governance reform ahead,” said Bo Li, deputy managing director of the IMF.
He encouraged Ghanaian authorities to strengthen domestic revenue mobilisation, improve public financial and investment management, and expand social protection measures for vulnerable households.
The Fund’s assessment underscores the importance of sustained regulatory compliance, financial supervision, risk management and sound governance in maintaining Ghana’s recent macroeconomic gains and strengthening confidence in its economic policy framework.
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