Ghana Transitions to Policy Coordination Instrument after IMF Bailout Programme Exit
Ghana has officially now transitioned to a non-financial Policy Coordination Instrument (PCI) to maintain long-term fiscal stability.
This follows the conclusion of its Extended Credit Facility (ECF) programme with the International Monetary Fund (IMF), signalling a successful exit from its financial bailout.
The move is geared toward achieving “Investment Grade” status.
According to the government, the PCI is a non-financial agreement with the IMF to provide technical assistance and capacity development without a financial loan.
According to the Minister of State for Government Communications, Felix Kwakye Ofosu (MP), the PCI signals commitment to prudent policy to private investors and development partners.
“This will lower borrowing costs for both the sovereign and private sectors, attracting long-term institutional investment and unlocking financing for critical infrastructure.”
He noted that the ECF programme’s successful conclusion follows a period of rigorous fiscal discipline and structural reforms.
He noted that following the 2024 derailment, the administration of President John Mahama acted decisively in 2025 to recalibrate the economy through front-loaded fiscal consolidation and bold expenditure rationalisation.
“Inflation has reduced significantly, the cedi has strengthened markedly, public debt as a share of GDP has declined sharply, and economic growth has rebounded strongly. Gross international reserves have risen to an all-time high, reaching approximately US$14.5 billion by February 2026, almost 6 months of import cover and Ghana’s sovereign credit ratings have improved from restricted default (Junk Status) to ‘B’ with a positive outlook, representing five distinct rating levels upgrades.”
According to him, the milestone reflects improved fiscal performance, normalised relations with global creditors, and renewed market confidence.
Story by Hajara Fuseini
Click to read more: https://opemsuo.com/author/hajara-fuseini/
