IMF Completes ECF Review in Ghana, Grants Waiver for Non-Observance

• The IMF has completed its review of Ghana's ECF program, marking the sixth and final review, formally concluding the program on July 27, 2026.
• A temporary waiver was granted for non-observance of certain performance criteria related to Bank of Ghana claims on the central government and public entities.
• The waiver is based on the temporary nature of the deviation and corrective actions taken by the authorities.
• Lawyers advising clients on compliance with Ghanaian financial regulations should note the potential impact of this waiver on risk exposure and liabilities.
• Ghana has transitioned from the ECF program to a new 36-month Policy Coordination Instrument (PCI) with the IMF.

This decision acknowledges that the deviation was due to a one-off event related to the domestic gold purchase program (DGPP) and not a systemic issue.

The International Monetary Fund's (IMF) Executive Board has finalized its review of Ghana's Extended Credit Facility (ECF) program, marking the sixth and final review. The completion of this review, approved on July 27, 2026, is a significant milestone for Ghana's economic reform agenda, which aims to stabilize the country's economy and promote sustainable growth.

The IMF's decision to grant a waiver for non-observance of certain performance criteria has been welcomed by the Ghanaian authorities. This waiver allows for temporary deviation from specific targets related to Bank of Ghana (BoG) claims on the central government and public entities.

The ECF program was a key component of Ghana's economic reform agenda, which was launched in 2015. The program aimed to address the country's fiscal challenges, including its high debt levels and large budget deficits. As part of this effort, the government has implemented various measures to strengthen public financial management, improve revenue mobilization, and enhance transparency and accountability.

The waiver granted by the IMF is based on the temporary nature of the deviation from the performance criteria and corrective actions taken by the authorities. This decision acknowledges that the deviation was due to a one-off event related to the domestic gold purchase program (DGPP) and not a systemic issue.

Lawyers advising clients on compliance with Ghanaian financial regulations should note that this waiver may impact their assessment of risk exposure and potential liabilities.

The completion of the ECF review and the grant of a temporary waiver by the IMF are significant developments for Ghana's economic reform agenda. They demonstrate the country's commitment to implementing key reforms, including those related to public financial management and revenue mobilization.

The waiver also underscores the importance of flexibility in addressing unforeseen circumstances that may arise during the implementation of economic programs. It highlights the need for policymakers to carefully consider the potential consequences of their decisions and take proactive steps to mitigate any adverse effects.

Going forward, Ghana has transitioned to a 36-month non-financing Policy Coordination Instrument (PCI) with the IMF, which will anchor the country's next phase of reforms and require continued fiscal discipline and adherence to its own set of targets.

Lawyers advising clients on compliance with Ghanaian financial regulations should note the temporary waiver granted by the IMF for non-observance of certain performance criteria, which may impact their assessment of risk exposure and potential liabilities.

Source: Original reporting via IMF Press Release