By Zobia Zulfqar 
The International Monetary Fund (IMF) has acknowledged corrective measures taken by the Bank of Ghana (BoG) following a temporary breach of lending limits to the government, describing the action as an important step in maintaining macroeconomic stability and supporting Ghana’s ongoing economic recovery programme.
The acknowledgement came as the IMF Executive Board approved Ghana’s sixth review under the Extended Credit Facility (ECF), unlocking the final disbursement of US$371 million. The latest release brings total financial support under the programme to approximately US$3 billion, reflecting continued confidence in Ghana’s reform agenda despite recent economic challenges.
According to the IMF, the Bank of Ghana temporarily exceeded the end December 2025 performance criterion relating to the ceiling on claims to the central government and public entities. The Fund explained that the breach was limited in scope and resulted from cost sharing arrangements associated with the Domestic Gold Purchase Programme (DGPP).
The IMF stated that the deviation was temporary and occurred by only a small margin. Given the circumstances surrounding the breach and the corrective actions subsequently implemented by the central bank, the Executive Board granted Ghana a waiver during the sixth programme review.
The Fund noted that the Bank of Ghana responded promptly by introducing measures to address the issue and reinforce its commitment to prudent monetary management. These actions played a significant role in securing the successful completion of the programme review and the approval of the final disbursement under the ECF arrangement.
In May 2026, the Bank of Ghana publicly reaffirmed its commitment to maintaining zero monetary financing of government budgets. The central bank stated that it would no longer finance fiscal deficits through money creation, describing the policy as essential to preserving macroeconomic stability and strengthening confidence in Ghana’s economy.
Bank officials explained that excessive monetary financing of government spending had previously contributed to rising inflation, depreciation of the cedi and declining purchasing power for households. By ending direct financing of government deficits, the central bank aims to strengthen policy credibility while supporting long term economic recovery.
The Bank further stated that adherence to zero monetary financing would help protect household incomes, improve price stability and safeguard vulnerable groups from the negative effects of inflation. Officials believe the policy will also contribute to restoring investor confidence and strengthening the country’s monetary framework.
The IMF welcomed the Bank’s renewed commitment, noting that strong coordination between fiscal and monetary authorities remains essential for sustaining economic gains achieved under the reform programme. The Fund observed that disciplined monetary policy is a key component of efforts to reduce inflation, stabilise exchange rates and improve overall economic performance.
While describing Ghana’s performance under the Extended Credit Facility as broadly satisfactory, the IMF also highlighted areas that require continued attention. It said sustained policy implementation would be necessary to consolidate recent economic improvements and ensure lasting macroeconomic stability.
The Fund indicated that future reforms would continue under the new Policy Coordination Instrument (PCI), which is expected to guide Ghana’s economic management after the completion of the ECF programme. The PCI is designed to support countries that no longer require direct financial assistance but remain committed to implementing sound economic policies.
According to the IMF, the new framework will focus on strengthening fiscal discipline, improving public financial management and supporting private sector led economic growth. The organisation stressed that maintaining reform momentum will be critical to achieving sustainable development and protecting recent economic gains.
Economic analysts believe the IMF’s latest assessment sends a positive signal to international investors and development partners. The approval of the final ECF disbursement demonstrates confidence in Ghana’s willingness to implement difficult but necessary reforms aimed at restoring economic stability.
Observers also note that ending central bank financing of government deficits aligns Ghana with internationally accepted best practices for monetary policy. Independent central banks are generally expected to avoid direct financing of government spending in order to maintain price stability and preserve confidence in national currencies.
The Bank of Ghana has in recent months introduced additional measures to strengthen monetary policy, improve transparency and reinforce institutional independence. These reforms are expected to complement broader fiscal consolidation efforts undertaken by the government as part of its economic recovery strategy.
With the successful completion of the sixth review under the Extended Credit Facility, Ghana now enters the next phase of its reform agenda under the Policy Coordination Instrument. The IMF has indicated that continued commitment to fiscal discipline, prudent monetary management and structural reforms will be essential for sustaining economic growth, protecting the purchasing power of citizens and ensuring long term macroeconomic stability.
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