Ghana exits four-year debt distress as IMF upgrades risk rating to moderate
The country's primary fiscal balance improved to a surplus of 2.1 per cent of Gross Domestic Product (GDP), supported by prudent fiscal and monetary.
IMF headquarters in Washington, D.C., the United States. (Photo: Xinhua)
Ghana has exited its four-year classification as being in critical debt distress after the International Monetary Fund (IMF) upgraded the country's external and overall debt risk rating to moderate.
In its latest assessment, the lender cites strong macroeconomic reforms, improving fiscal health and progress in restructuring public debt.
The decision follows the IMF Executive Board’s completion of the sixth and final review of Ghana’s 39-month, $3 billion (Sh396 billion) Extended Credit Facility (ECF) programme, alongside the conclusion of the 2026 Article IV consultation and review of the country’s request for a new 36-month Policy Coordination Instrument (PCI).
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Completion of the review unlocks a final disbursement of Special Drawing Rights (SDR) 265.9 million, equivalent to about $371 million (Sh48.9 billion), bringing Ghana's total drawdown under the programme to approximately $3 billion (Sh396 billion).
The lender notes that Ghana has delivered broad macroeconomic gains under the programme, allowing the country to return to a moderate debt risk rating two years earlier than initially projected when the ECF arrangement was approved in 2023.
“Ghana's performance under the program has been broadly satisfactory,” the IMF said.
It adds that inflation has fallen sharply from elevated levels to 5.3 per cent in June 2026, while gross international reserves nearly doubled to $11.9 billion by the end of 2025, equivalent to four months of import cover.
The country's primary fiscal balance also improved to a surplus of 2.1 per cent of Gross Domestic Product (GDP), supported by prudent fiscal and monetary policies.
Economic growth has also remained resilient, with real GDP expanding by six per cent in 2025 before accelerating to 6.4 per cent year-on-year in the first quarter of 2026, driven by broad-based economic activity.
The Fund further notes that Ghana has made significant headway in restructuring its public debt, having signed debt relief agreements with more than half of its bilateral creditors while also reaching agreements in principle with a similar share of external commercial creditors.
Negotiations with the remaining creditors are ongoing.
Looking ahead, the IMF says the newly approved PCI will anchor Ghana's reform agenda beyond the ECF programme by supporting sound macroeconomic policies, strengthening debt sustainability and helping mobilise donor and market financing.
Nevertheless, the Fund notes that Ghana's 2026 budget, which targets a primary surplus of 1.5 per cent of GDP, together with continued improvements in domestic revenue mobilisation, public financial management and governance reforms, will be critical in preserving debt sustainability while creating fiscal space for development spending and stronger social protection.