The government has requested a new three-year programme from the International Monetary Fund (IMF) following the conclusion of its current Extended Credit Facility arrangement, the Fund has confirmed.
The proposed arrangement, known as the Policy Coordination Instrument, does not provide direct financing but will require IMF endorsement of government policies over the next three years. This approval is expected to influence Ghana’s credit rating and its ability to access international capital markets.
Sources indicate that the move is intended to create additional fiscal space for external borrowing as domestic revenue continues to come under pressure. Under the framework, the IMF will review Ghana’s economic performance every six months to assess whether the country remains on track with agreed policy targets.
Without this endorsement, analysts say Ghana could face difficulties raising credit on international markets.
Although Ghana has moved from one IMF arrangement to another, experts note that the level of scrutiny remains broadly similar. The Policy Coordination Instrument, while non-financing, still requires adherence to strict policy standards, including “upper credit tranche” benchmarks comparable to those under lending programmes.