The International Monetary Fund (IMF) has given the Bank of Ghana (BoG) a clean bill of health on its government financing policy, acknowledging corrective measures taken after a temporary breach of lending limits.
The IMF made this announcement in its assessment following the sixth review of Ghana's Extended Credit Facility (ECF) programme, which saw the Fund approve Ghana's final US$371 million disbursement under the programme. This brings the total programme disbursements to US$3 billion.
IMF Welcomes BoG's Reaffirmation of Zero Monetary Financing
In May 2026, the BoG reaffirmed its commitment to maintaining zero monetary financing of government budgets, stating that it would not finance fiscal deficits through money creation in order to safeguard price stability and protect the cedi. The Bank said such financing had contributed to inflation, currency depreciation, and a loss of purchasing power among households.
The BoG said 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. "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.
IMF Calls for Continued Policy Discipline
While describing Ghana's performance under the ECF programme as broadly satisfactory, the IMF identified areas requiring sustained policy attention under the new Policy Coordination Instrument (PCI) to consolidate macroeconomic stability and support inclusive, private sector-led growth. The Fund said although resilience in the financial sector had improved, vulnerabilities remained among some state-owned and private banks and specialised deposit-taking institutions.
The IMF welcomed the BoG's cautious monetary policy easing as inflation returned to the target range but stressed that maintaining policy credibility would require safeguarding the Central Bank's independence and permanently ending quasi-fiscal activities. It also called for the transfer of the gold purchase programme to the Ghana Gold Board (GoldBod) and urged the authorities to fulfil their commitment to recapitalise the BoG by 2032.
IMF Urges Fiscal Discipline and Governance Reform
On fiscal policy, the Fund urged Ghana to achieve the planned reduction in the primary surplus to 0.5 per cent from 2027, consistent with debt sustainability, while strengthening oversight of state-owned enterprises in the energy and cocoa sectors. The IMF also called for the timely implementation of a reformed asset declaration framework and the passage of the revised Conduct of Public Officials Bill to enhance transparency and strengthen 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," Mr Bo Li, Deputy Managing Director of the IMF, said. He encouraged the authorities to strengthen domestic revenue mobilisation, improve public financial and investment management, and enhance social protection for vulnerable households.
The IMF's assessment provides a boost to the BoG's efforts to maintain a stable financial system and support economic growth. With the Fund's approval of the final disbursement under the ECF programme, Ghana can now focus on implementing the recommendations outlined in the IMF's report and ensuring a sustainable economic recovery.
Source: Joy Online
