The International Monetary Fund (IMF) has advised Ghana to continue following its economic reform programme after the country completed its Extended Credit Facility (ECF) arrangement.
The IMF warned that Ghana must remain disciplined to protect the economic progress it has made in recent years.
The IMF Mission Chief for Ghana, Ruben Atoyan, said Ghana’s move from a bailout programme to a new policy-based framework means local institutions now have a bigger responsibility to keep the economy stable and continue reforms.
Speaking at a press briefing on Friday, May 15, Atoyan explained that the new arrangement, called the Policy Coordination Instrument (PCI), will not provide financial support.
Instead, it will offer technical assistance and policy advice to help Ghana manage its economy.
He said the new framework will focus on maintaining fiscal discipline, improving debt management, strengthening governance systems, and supporting economic growth and job creation.
“It’s a form of technical assistance. We’re very happy to engage in this new phase of the relationship. The PCI will focus on multiple objectives,” he said.
Atoyan said the next stage of cooperation will focus on maintaining “growth-friendly fiscal consolidation, safeguarding debt sustainability, strengthening transparency and governance, reinforcing monetary and financial policy frameworks, supporting diversification, improving growth, and job creation”.
He also warned Ghana not to lose the economic stability it achieved during the IMF-supported programme.
“Importantly, this must be done without reversing the hard-won stabilization gains,” he said.
According to the IMF official, improvements in Ghana’s debt situation could create room for the government to invest more in development projects and social programmes, but the money must be managed carefully.
“This space can be now used to address pressing development needs, promote employment, strengthen social and priority spending,” he said.
However, he stressed that the government must continue to manage public finances responsibly and reduce financial risks linked to state institutions.
“Maintaining discipline supported by stronger public financial management, better oversight, and reducing quasi-fiscal risks will be very important,” he said.
Atoyan also mentioned that global economic challenges, including unstable commodity prices and geopolitical tensions, could affect Ghana’s recovery.
“The external environment remains uncertain and volatile this underscores the need for continued prudent fiscal and monetary policy,” he said.
He added that the long-term goal is to strengthen institutions, encourage private sector-led growth, and make sure economic stability benefits all citizens through inclusive development.
