The International Monetary Fund (IMF) has expressed its readiness to renegotiate Ghana’s $3 billion financing programme with President-elect John Dramani Mahama’s administration, provided that the core reforms supporting the programme remain intact.
“IMF-supported programmes are developed collaboratively with each country’s authorities,” an IMF spokesperson told Bloomberg. “Any changes must ensure that the economic objectives of the reform programmes remain achievable.”
The current IMF programme, launched in May 2023, is designed to help Ghana restore macroeconomic stability, ensure debt sustainability, and foster inclusive, long-term growth. Ghana initially sought IMF support after its debt soared to nearly 100% of GDP by the end of 2022, rendering it unable to service its loans.
The debt crisis fueled inflation, which peaked at 54.1% two years ago before easing to 23% by November 2024. Meanwhile, the cedi has depreciated by about 60% over the past four years, prompting the central bank to raise interest rates to a 20-year high of 30%, later reducing them to 27%.
Under the terms of the IMF programme, the government is tasked with achieving a primary budget surplus of 0.5% of GDP by the end of 2024 and reducing the debt-to-GDP ratio to 55% by 2028.
“We do not expect the NDC to walk away from the current IMF programme,” Barclays Plc said in a note to clients. “It seems reasonable to expect a renegotiation to help align the NDC’s economic preferences and tactical macro signalling with the programme.”
Mr Mahama beat Vice-President Mahamudu Bawumia in the election, winning 56.6 per cent of the vote.
