IMF Confirms Ghana Can Repay Debts If It Adheres to $3 Billion Loan Programme
Ghana’s Debt Repayment Prospects Strengthen Under IMF Programme
Ghana can successfully meet its debt obligations if it maintains strict adherence to the objectives of its $3 billion loan-supported programme with the International Monetary Fund (IMF), according to Stéphane Roudet, IMF Mission Chief for Ghana.
Speaking during a roundtable discussion with Ghanaian journalists at the recent IMF and World Bank Group spring meetings in Washington, DC, Roudet emphasized that Ghana’s macroeconomic framework assumes repayment of outstanding debts.
“Once we go to the Board, we publish the staff report, you will see that the macroeconomic framework assumes those payables will be repaid,” Roudet stated.
Key Factors in Ghana’s Debt Management Strategy
The IMF official noted that the pace of debt repayment would depend on Ghana’s ability to raise necessary financing. He highlighted that the 2025 budget includes provisions for repaying arrears below the line of GHS13 billion as part of debt obligation efforts.
Addressing concerns about Ghana’s fiscal position, Roudet acknowledged:
“The magnitude of the problem is quite large. Our assessment shows the primary balance last year was a deficit of about 3.25% of GDP.”
This compares to the IMF programme target of a 0.5% GDP surplus, prompting discussions about short-term interventions to realign Ghana’s fiscal trajectory.
Progress on Fiscal Reforms
The IMF has observed positive developments in Ghana’s fiscal reforms, including:
- Implementation of a strong budget targeting a 1.5% GDP primary surplus
- Amendments to the Procurement Act strengthening financial oversight
- Discussions on structural reforms including the Fiscal Framework and Fiscal Council
Roudet explained that the Procurement Act changes now require Ministry of Finance authorization before any procurement permits are issued, centralizing financial control.
Background on Ghana’s IMF Programme
Ghana is currently implementing a three-year $3 billion Extended Credit Facility (ECF) with the IMF, the country’s 17th loan-supported programme with the Bretton Woods institution. The programme, which began in 2023 under former President Nana Akufo-Addo and continues under President John Mahama, aims to:
- Restore macroeconomic stability
- Ensure debt sustainability
- Lay foundations for inclusive economic growth
The programme is scheduled to conclude in 2026, with Ghana making progress toward its fiscal targets despite challenges.
Source: Ghana Business News