Explainer: Why Ghana is still with the IMF despite exiting US$3 billion bailout programme 

On May 15, 2026, the Government of Ghana announced that the country has officially exited the International Monetary Fund’s (IMF) Extended Credit Facility (ECF) programme and is transitioning to a new arrangement known as the Policy Coordination Instrument (PCI).

Following the announcement, some social media users criticised the move, claiming the government had signed a new deal that would keep Ghana under the IMF until 2029.

A member of the New Patriotic Party’s (NPP) National Communications Team, Awal Mohammed, stated in a Facebook post on May 15, 2026: “Prez Mahama does not trust his own economic managers. The IMF was set to leave Ghana this year, but the Prez has signed a deal for them to babysit us until he completes his term in 2029.” 

But is the new arrangement another IMF bailout programme? And what is the difference between the ECF and the PCI?

What was the IMF Extended Credit Facility (ECF) programme about?

Ghana entered an IMF Extended Credit Facility (ECF) programme in May 2023 when the IMF approved a US$3 billion support package for the country, scheduled to run for 36 months, ending in 2026.

According to the Ministry of Finance, Ghana sought IMF’s support for three main reasons:

1. To help stabilize the economy after the combined shocks of the COVID-19 pandemic and the Russia-Ukraine war worsened debt, inflation, and exchange rate pressures.

2. The country also needed some balance of payment support to boost foreign reserves, stabilize the cedi, and ensure continued financing for critical imports and economic activities.

3. To provide catalytic effect in helping attract additional financing from development partners, creditors,  and international capital markets.

The ECF is a lending programme designed for low-income countries facing serious economic difficulties. Under the arrangement, the IMF provides financial support in phases while monitoring economic reforms and targets agreed upon with the government.

Under this arrangement, Ghana received funds in tranches after successful programme reviews. The staff  level agreement on the final review was completed on May 15 2026, but the final disbursement will be done in July.

IMF ECF disbursement to Ghana

What is the Policy Coordination Instrument (PCI)?

Unlike the ECF, the Policy Coordination Instrument (PCI) is not a loan or bailout programme.

The PCI is a non-financial IMF arrangement that supports countries through policy advice, technical support, monitoring, and economic assessments without disbursement of IMF money.

This means Ghana will not receive any bailout funds under the new arrangement.

Instead, the framework allows the IMF to monitor and assess Ghana’s economic policies and reforms. 

According to the IMF staff team lead, Ruben Atoyan, “the non-financing 36-month PCI aims at: (i) sustaining growth-friendly fiscal adjustment; (ii) safeguarding debt sustainability; (iii) strengthening fiscal transparency and governance, particularly for state-owned enterprises; (iv) enhancing the monetary and exchange-rate policy framework; (v) reinforcing financial sector stability; and (vi) supporting economic diversification and inclusive growth.”

The PCI is often used by countries that no longer require IMF financing but still want IMF policy support and international market confidence.

In essence, Ghana has ended its IMF borrowing programme but remains under IMF-supported policy coordination arrangement aimed at sustaining economic stability and reforms.

Written by Nusrat Essah