President John Dramani Mahama has reaffirmed Ghana’s commitment to its current $3 billion Extended Credit Facility (ECF) with the International Monetary Fund (IMF), stating that there are no immediate plans to extend the programme. Speaking with Bloomberg TV at the Munich Security Conference, President Mahama emphasized that while future extensions remain an option, the government is dedicated to adhering to the existing programme.
The $3 billion ECF, approved in May 2023, is designed to support Ghana’s economic stability and growth over three years. Discussions with the IMF have focused on key areas such as tax rationalization, debt management, and fiscal prudence. President Mahama highlighted the importance of tax reforms, criticizing the previous administration’s approach of imposing multiple taxes, which led to diminishing returns.
To address Ghana’s economic challenges, the government has proposed several key measures, including reactivating the country’s sinking fund to facilitate debt repayments. President Mahama acknowledged the significant repayments due this year, particularly domestic debt obligations exceeding $15 billion in 2025. He emphasized the government’s dedication to fiscal discipline, stating that expenditure rationalization remains a priority.
Looking ahead, President Mahama highlighted the upcoming budget presentation in March, which will incorporate insights from the IMF’s latest staff review. The fourth IMF review is scheduled for April, and the government is aligning its fiscal policies with recommendations from the ongoing assessments. Despite economic challenges, President Mahama expressed confidence in Ghana’s relationship with the IMF, describing it as “cordial”.
CNR/Ruth Abla ADJORLOLO
