Ghana Secures $370 Million Loan From IMF

Ghana on Tuesday said that it has secured a critical staff-level agreement with the International Monetary Fund (IMF), unlocking the release of a $370 million fifth tranche under the country’s $3 billion bailout programme.

The agreement, reached after two weeks of intensive talks with IMF officials on a package of economic policies and reforms to conclude the fourth review of the 36-month extended credit facility (ECF) supported program, marks a pivotal step in Ghana’s ongoing efforts to stabilise its economy and accelerate reform.

Announcing the deal in Accra, the country’s Finance Minister Dr Cassiel Ato Forson, described it as a significant milestone and reaffirmed the government’s commitment to restoring macroeconomic stability, achieving debt sustainability, and protecting vulnerable populations.

“What rather started as the most difficult review of the programme has ended successfully,” he said during a joint press briefing with IMF officials.

Dr Forson acknowledged that his administration inherited a programme that had derailed from several fiscal and structural benchmarks by the end of 2024, with inflation overshooting targets and key reforms stalling. In response, the government has moved swiftly to reorient policy and correct course.

Among the actions taken is an independent audit of a large stockpile of arrears accumulated in 2024, led by the Auditor-General and two international firms. The report, expected within eight weeks, aims to verify the arrears’ legitimacy and recommend corrective actions.

The government has introduced legislative reforms with the Parliament has amended Ghana’s Public Financial Management Act to include a debt ceiling of 45% of GDP by 2035 and mandate an annual primary surplus of at least 1.5%.

A new independent fiscal council will oversee compliance, while procurement rules now require Finance Ministry certification for all central government contracts, the Minister said.

Welcoming these measures, the IMF’s mission chief Stéphane Roudet said that upon completion of the Executive Board review, Ghana would have access to about $370 million, bringing the total IMF financial support disbursed under the arrangement, since May 2023, to about $2.35 billion.

He also said that the preliminary data pointed to fiscal slippages ahead of the 2024 general elections, with arrears accumulating and inflation exceeding targets due to delayed policy implementation.

Surplus Budget

To regain momentum, the 2025 budget projects a primary surplus of 1.5% of GDP, reversing the 3.25% deficit recorded the previous year.

The Bank of Ghana has recently increased its policy rate and is reviewing its liquidity management operations. The ensuing tightening in the monetary policy stance, together with the ongoing fiscal consolidation, is expected to bring inflation down.

Progress has also been made in reforming the energy sector. The resumption of quarterly electricity tariff adjustments, the operationalisation of a single account mechanism, and further rollout of the Cash Waterfall Mechanism are expected to reduce fiscal risks and prevent new arrears.

Dr Forson while assuring to fully implement all programme commitments, said: “We have made great progress and are determined to stay the course. This is how we build the Ghana we want.”