President Mahama Focuses on Fiscal Stability, Rejects Immediate IMF Extension

President John Dramani Mahama has reaffirmed that his administration has no immediate intention to extend Ghana’s current $3 billion Extended Credit Facility (ECF) agreement with the International Monetary Fund (IMF).

Speaking at the Munich Security Conference in an exclusive interview with Bloomberg TV, the president emphasized that the focus remains on fully executing the measures agreed upon under the existing programme.

“We’ve not talked about an extension of the programme. We are determined to continue with this programme,” President Mahama stated.

He acknowledged that if the situation demanded, an extension could be revisited, but assured that the current priority is adhering to the established fiscal goals.

Ghana’s ongoing $3 billion ECF, approved on May 17, 2023, is set to span three years and is central to the country’s economic recovery strategy.

Under the arrangement, Ghana is committed to making significant structural reforms and maintaining fiscal discipline to restore stability in the economy.

The programme aims to strengthen key areas of Ghana’s financial health, including managing debt and rationalizing taxes, while also ensuring that there is long-term economic growth.

During his discussion with the IMF, Mahama highlighted key proposals from his government aimed at achieving economic stability, focusing on vital areas such as tax rationalization, efficient debt management, and fiscal prudence.

These measures are seen as essential to ensuring that the country can navigate its economic challenges effectively and secure sustainable development.

While President Mahama did not dismiss the possibility of requesting additional funds or extending the IMF agreement in the future, he reiterated that the immediate focus would remain on fulfilling the commitments of the current programme.

“If it’s necessary to look at additional funds or to extend the programme, we’ll look at it, but for now, we are determined to continue on this trajectory,” Mahama added.

The government’s continued efforts to stabilize the economy are seen as critical to the nation’s recovery, with the IMF programme serving as a cornerstone for Ghana’s broader economic reform agenda.