Bright Simons, Vice President of IMANI Africa, has revealed that under Ghana’s current arrangement with the International Monetary Fund (IMF), the Mahama administration is prohibited from issuing sovereign guarantees.

Mr Simons explains that this restriction is part of the broader fiscal conditions attached to Ghana’s IMF-supported Extended Credit Facility (ECF) programme.

“The government is barred from issuing sovereign guarantees. I don’t know what the exemption criteria are. Per standard, we are not allowed to issue sovereign guarantees,” he said in an interview with Channel One TV on Monday, January 5.

His comments follow the IMF Executive Board’s approval of the Fifth Review of Ghana’s programme on Wednesday, December 17, 2025.

The review recognised Ghana’s strong performance under the ECF, including measures to restore macroeconomic stability, strengthen public finances, and support economic recovery. Completion of the review is expected to result in the release of a sixth tranche of US$380 million to the country.

Mr Simons explained that restrictions such as the ban on sovereign guarantees are designed to enforce fiscal discipline and prevent excessive public spending.

“There are a lot of things preventing us from spending above our means,” he said, emphasising that such measures are central to ensuring long-term economic stability and safeguarding the nation’s finances.