Enough of The IMF Bailouts: Forson Rules Out 18th IMF Deal for Ghana

Finance Minister Dr. Cassiel Ato Forson has declared that Ghana’s 17th programme with the International Monetary Fund must be the country’s final bailout, as the government moves to end decades of reliance on emergency financial support.

In a statement posted on Facebook, Dr. Ato Forson said the John Mahama led administration was committed to breaking the cycle of repeated IMF interventions that has characterised Ghana’s economic history since independence.

“Seventeen IMF Bailout Programmes are enough. We are restoring discipline, rebuilding resilience and creating an economy that can stand on its own. The seventeenth Bailout must be Ghana’s last,” the Finance Minister wrote.

The declaration echoes remarks made by President John Dramani Mahama at the 77th Annual New Year School and Conference at the University of Ghana in January, where he said the current arrangement “must be the 17th and the last time that Ghana goes for a bailout from the IMF”.

Programme concludes with final $371m disbursement

 Ghana’s three-year Extended Credit Facility (ECF) arrangement, a $3 billion programme approved by the IMF in May 2023, officially concluded in July after the IMF Executive Board completed its sixth and final review.

The approval unlocked a final disbursement of approximately $371 million to the Bank of Ghana, bringing total funds received under the programme to the full $3 billion.

The IMF said Ghana’s performance under the programme was “broadly satisfactory”, citing stronger fiscal performance, higher foreign reserves and progress in restructuring public debt. The Fund noted that “the comprehensive debt restructuring is largely complete, and Ghana’s risk of debt distress has returned to moderate”.

From supplicant to partner

Presenting the 2026 Mid-Year Budget Review to Parliament on 23 July, Dr. Forson told MPs that Ghana had evolved from a recipient of emergency financial support to an equal policy partner with the IMF.

“We have evolved from the position of supplicant to one of a partner with the International Monetary Fund,” he said.

The Finance Minister stressed that the country’s economic recovery was driven by deliberate policy reforms rather than the IMF programme or debt restructuring alone. “Ghana’s recovery is as a result of superior economic management,” he told Parliament.

The Minister outlined three key transformational reforms introduced since the Mahama administration took office in January 2025: fiscal correction, modernisation of Ghana’s tax regime, and a complementary fiscal policy to support inflation targeting and exchange rate stability.

Fiscal discipline delivers results

Dr. Ato Forson said the reforms had produced measurable improvements across major macroeconomic indicators. Primary expenditure declined from 18.7 per cent of GDP in 2024 to 13.2 per cent in 2025, while the primary fiscal balance improved from a 2.9 per cent deficit to a 2.5 per cent surplus over the same period.

He reaffirmed the government’s macroeconomic targets for 2026, including overall GDP growth of at least 4.8 per cent, end-year inflation of eight per cent (plus or minus two percentage points), and a primary surplus of 1.5 per cent of GDP.

The government also confirmed it would not seek supplementary budget estimates for the remainder of the 2026 fiscal year, with the 2026 appropriations remaining unchanged.

Rather than pursuing a new financial bailout, Ghana has transitioned to a 36-month Policy Coordination Instrument (PCI) with the IMF—a non-financing arrangement designed for countries that no longer face balance of payments challenges.

“The Executive Board is also expected to approve a 36-month Policy Coordination Instrument, a non-financing arrangement designed for countries that no longer have and are not expected to face balance of payment needs,” Dr Forson told Parliament.

The PCI will focus on six priority areas: growth-friendly fiscal consolidation, debt sustainability, fiscal transparency and governance, stronger monetary and exchange rate policy frameworks, financial sector stability, and economic diversification.

“The PCI will enable us to continue leveraging the IMF’s regular policy assessment and expertise as a signal to investors, thereby certifying the credibility of our stewardship and further strengthening our credit rating,” the minister said.

Describing Ghana’s economic turnaround, Dr Forson told Parliament: “Ghana has moved away from the intensive-care unit to the wellness centre.”

A history of repeated bailouts

Ghana has turned to the IMF for financial support 17 times since joining the Fund in September 1957.The first bailout request came in 1966, following the overthrow of Ghana’s first president, Dr Kwame Nkrumah.

Successive governments have sought IMF assistance during periods of economic crisis, with the latest programme triggered by spiralling debt, soaring inflation and a plunging currency—conditions worsened by the economic fallout from the Covid-19 pandemic and the war in Ukraine.

Ghana not going back

Dr. Ato Forson struck an optimistic tone about the country’s economic future, telling Parliament: “Ghana is not going back. Ghana is moving forward.”

He said the government’s focus would be on maintaining stability, strengthening growth and avoiding a repeat of past economic crises. “Fiscal prudence and discipline always deliver results,” he added.

The minister previously told Parliament that Ghana does not expect to seek another IMF bailout “in the foreseeable future”.

“I repeat, no further IMF financial bailout is currently required in the foreseeable future,” Dr. Ato Forson declared.