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

Speaking in an interview with Bloomberg TV at the Munich Security Conference, President Mahama stated that his government remains committed to the existing IMF program while keeping future extensions as an option if necessary.

“We’ve not talked about an extension of the program. We are determined to continue with this program.

“If it’s necessary to look at additional funds or to extend the program, we’ll consider it, but for now, we are focused on staying the course,” Mahama stated.

The $3 billion ECF, approved on May 17, 2023, spans three years and aims to support Ghana’s economic stability and growth.

During recent discussions with the IMF, President Mahama’s administration outlined key proposals to strengthen economic policies.

A major focus of the IMF engagement was tax rationalization.

John Mahama also criticized the previous government’s approach of imposing multiple taxes, which he argued led to diminishing returns as higher tax burdens resulted in lower revenue collection.

“The previous government’s strategy of adding more taxes backfired, leading to reduced revenue. We need to rationalize the tax system, make it more transparent, and easier to understand to improve compliance,” Mahama explained.

To support these efforts, the IMF has agreed to provide technical assistance to streamline Ghana’s tax system, ensuring efficiency and better compliance for businesses and individuals.

President Mahama also addressed Ghana’s ongoing debt restructuring efforts, noting significant repayments due this year, particularly domestic debt obligations exceeding $15 billion in 2025.

To manage these challenges, his administration has reactivated the country’s sinking fund to facilitate debt repayments.

“We have reactivated the sinking fund and allocated more resources to it to handle the repayments due this year,” President Mahama said.

He further emphasized the need for fiscal prudence, adding, “We must cut waste, rationalize expenditures, and redirect resources to priority programs.”

Looking ahead, President Mahama highlighted the upcoming budget presentation in March, which will incorporate recommendations from the IMF’s latest staff review.

The fourth IMF review is scheduled for April, and the government is aligning its fiscal policies with the IMF’s assessments.

“The budget in March will reflect insights from the IMF’s recent mission. We are committed to maintaining a strong partnership with the IMF to ensure the success of the ECF program,” President Mahama stated.

Despite economic challenges, John Mahama expressed confidence in Ghana’s relationship with the IMF, describing it as “cordial.”

He reiterated his administration’s dedication to steering the country toward economic stability and growth through prudent fiscal management and effective implementation of the IMF program.



ID/MA

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