The International Monetary Fund (IMF) is proposing a three-month extension of Ghana’s Extended Credit Facility (ECF) programme.

According to the IMF, the extension is needed to allow for the implementation of reforms underpinning the sixth and final review of the programme.

This was disclosed in the IMF Staff Report released after the Fund’s Executive Board approved Ghana’s fifth programme review.

If accepted, the proposal will extend Ghana’s ECF programme, which was scheduled to end in May 2026, to August 2026.

In the report, the IMF noted that “the extension through August 16, 2026, would help reach an understanding on the policies supporting completion of the 6th review, while allowing sufficient time to prepare and circulate Board documents.”

Proposed programme modifications

The IMF is also proposing modifications to Ghana’s programme, including changes to the Indicative Targets (ITs) and the Monetary Policy Consultation Clause (MPCC).

The Fund explained that at the end of March 2026, the primary balance and non-oil revenue ITs will be modified to accommodate macroeconomic developments, while maintaining the fiscal effort relative to GDP.

In addition, the MPCC bands for December 2025 and March 2026 are expected to be adjusted downward to reflect better the impact of recent macroeconomic developments on expected disinflation trends.

Programme status

Ghana’s 36-month ECF arrangement was approved by the IMF’s Executive Board in May 2023, with access amounting to 303.8 per cent of quota, equivalent to SDR 2.2419 billion, or about US$3 billion.

So far, Ghana has secured about US$2.8 billion following the successful completion of the fifth programme review.

The IMF said Ghana’s programme implementation has been broadly satisfactory, noting that all end-June 2025 performance criteria and indicative targets were met.

The Fund also disclosed that three prior actions were completed for the fifth review. These include the audit of 2024 payables, the cleansing of the taxpayer registry and ledger data, and the submission of the 2026 budget to Parliament in line with programme objectives.

There has also been progress on previously missed structural benchmarks from the fourth review. The IMF said the strategy for state-owned banks, which was initially due in April 2024, was implemented in September 2025.

The Fund further praised the authorities for progress in operationalising indicative targets, which have been rephased in three stages. The first stage covers key aspects of the missed structural benchmarks and has been reset as a new end-March 2026 structural benchmark.

Out of the eleven structural benchmarks for the current ECF review, the IMF said four were met, two were implemented with delays, one was implemented as a prior action, one is expected to be implemented in December 2025, and three were missed.

The IMF noted that the end-June 2025 structural benchmark on merging certain statutory funds with their line ministries was not met, as the authorities opted for an alternative approach to achieve the programme’s objective of reforming earmarked funds.

Challenges and risks

Despite the progress made under the programme, the IMF expressed concern about Ghana’s economic outlook.

According to the report, “the macroeconomic outlook remains generally positive though subject to significant downside risks.”

The Fund said these risks mainly stem from potential deterioration in the external environment, particularly commodity price volatility, as well as confidence effects arising from policy and reform slippages.

It also warned that delays in completing Ghana’s comprehensive debt restructuring pose additional risks.

The IMF further highlighted Ghana’s vulnerability to regional conflicts, terrorism, geoeconomic fragmentation, commodity price volatility, and trade and investment shocks.

Domestic policy slippages, the Fund cautioned, could undermine macroeconomic stability and debt sustainability, complicating engagements with external creditors and development partners.

The IMF also pointed out that delays in implementing the Energy Sector Recovery Programme could require additional budgetary resources and trigger electricity and fuel supply disruptions.

Debt classification

While acknowledging Ghana’s progress in reducing total debt and securing restructuring agreements with some bilateral creditors, the IMF said it still considers the country to be at high risk of debt distress.

Although all debt sustainability indicators remain below their respective thresholds under the baseline scenario, the Fund said it applied judgment to maintain the high-risk classification.

According to the IMF, this reflects significant uncertainties around commodity prices and exchange rate movements, as well as elevated rollover risks and independent power producer payment obligations.