NPP rejects claims IMF programme was derailed, says Ghana still under strict IMF supervision

The opposition New Patriotic Party (NPP) has strongly rejected suggestions that the current International Monetary Fund (IMF)-supported programme was derailed, insisting that official IMF records show the country maintained compliance with all core Quantitative Performance Criteria (QPCs) under the 2023 Extended Credit Facility (ECF) arrangement.

According to the party, the IMF’s latest assessment of Ghana’s economy rather points to continued macroeconomic recovery and institutional progress rather than a collapse of the programme.

In a detailed statement responding to recent government narratives surrounding the IMF programme, the NPP argued that under IMF standards, temporary policy slippages do not automatically amount to a derailment of a programme.

The party explained that a programme is only considered “off-track” when a country fails to meet the six binding Quantitative Performance Criteria established under the IMF arrangement, leading to missed programme reviews, requests for waivers, rephasing arrangements or renegotiation of programme conditions.

The NPP maintained that none of those conditions occurred under the current programme.

According to the statement, if government genuinely believes the programme was derailed, it should publicly disclose whether Ghana requested waivers, renegotiated programme conditions or sought rephasing arrangements following the December 2024 review.

The party insisted that no such actions were taken because the IMF programme fundamentally remained on course despite some election-related fiscal pressures.

The debate follows the IMF’s completion of the sixth review under the Extended Credit Facility programme and the approval of a new 36-month Policy Coordination Instrument (PCI), which will keep Ghana under IMF policy supervision and monitoring for the next three years.

Although government has celebrated the completion of the ECF programme as evidence of economic recovery and restored stability, the NPP argues that much of the progress being highlighted actually began under the previous administration when the IMF programme was launched in 2023.

According to the party, official records from the Bank of Ghana, Ministry of Finance and the IMF show that Ghana’s recovery trajectory started taking shape from 2023, with inflation beginning to decline sharply into 2024, foreign reserves improving significantly and the cedi beginning to appreciate from the fourth quarter of 2024.

The NPP further pointed to the 5.8 percent GDP growth recorded in 2024 as additional evidence that the programme could not accurately be described as derailed.

The party contrasted the current programme with Ghana’s 2015 IMF arrangement under the previous National Democratic Congress (NDC) administration, which it argued genuinely went off-track.

According to the statement, IMF Executive Board records clearly show that the 2015 ECF programme had to be formally extended and rephased after major fiscal slippages and the accumulation of domestic arrears.

The NPP quoted IMF documentation from September 2017 which stated that following completion of the third review in September 2016, implementation of the programme had gone “significantly off-track” due to fiscal slippages and rising domestic arrears at the end of 2016.

The party argued that when the Akufo-Addo administration assumed office in January 2017, it inherited a weakened IMF programme already suffering from serious implementation failures and subsequently worked with the IMF to restore credibility and complete the arrangement.

According to the NPP, the comparison between the 2015 and 2023 programmes is important because the same political tradition that presided over the economic difficulties leading to the 2014-2015 crisis is now back in government.

The statement warned that many of the structural weaknesses and fiscal management patterns that contributed to the earlier economic crisis remain relevant today and are among the risks the IMF is still highlighting under the new PCI arrangement.

The NPP also used the opportunity to commend Ghanaians for enduring the painful economic adjustment measures introduced under the IMF-supported recovery programme.

The party stated that the economic stabilisation currently being celebrated was built largely on difficult reforms implemented by the previous administration under the 2023 programme architecture.

Among the measures highlighted were the controversial Domestic Debt Exchange Programme and the external debt restructuring under the G20 Common Framework.

According to the NPP, those measures helped reduce Ghana’s debt-to-GDP ratio from 72.5 percent in December 2023 to 61.8 percent by the end of 2024 and further down to 45.3 percent at the end of 2025.

The party added that the IMF projects Ghana’s debt-to-GDP ratio to stand at approximately 53 percent by the end of 2026.

The statement argued that those reforms created the fiscal space currently available to the Mahama administration to pursue its policy objectives.

The NPP further claimed that the stabilisation programme also included major energy sector reforms and a fiscal consolidation strategy aimed at restoring the primary surplus position.

Despite acknowledging improvements in some macroeconomic indicators, the NPP rejected government attempts to portray the new 36-month Policy Coordination Instrument as a vote of confidence in the current administration.

According to the party, the PCI arrangement is specifically designed for countries that may have stabilised temporarily but still require close IMF monitoring, policy supervision and institutional discipline.

The NPP argued that the arrangement effectively means the IMF believes Ghana still requires structured oversight to maintain stability and prevent policy reversals.

The party noted that the IMF has clearly outlined several critical areas the PCI programme will focus on over the next three years.

These include fiscal adjustment, debt sustainability, governance of state-owned enterprises such as the Electricity Company of Ghana (ECG) and COCOBOD, risks linked to quasi-fiscal activities at the Bank of Ghana, monetary and exchange rate policy management, financial sector stability and anti-corruption reforms.

The statement further pointed to what it described as unresolved vulnerabilities within the economy despite recent gains.

According to the NPP, the IMF’s sixth review statement highlighted significant concerns regarding state-owned enterprise liabilities, particularly at ECG and COCOBOD, ongoing quasi-fiscal activities outside the formal budget framework and financial risks associated with the Bank of Ghana’s Domestic Gold Purchase Programme.

The party also cited IMF concerns regarding elevated non-performing loans within parts of the financial sector, governance weaknesses and the country’s vulnerability to fluctuations in gold and cocoa prices.

The NPP argued that if the economy had truly achieved full recovery as government suggests, the IMF would not continue to devote substantial attention to unresolved fiscal risks, governance concerns and institutional weaknesses.

According to the party, stabilisation alone does not necessarily translate into long-term economic transformation.

The statement also revisited concerns over the financial condition of the Bank of Ghana.

The NPP said the IMF’s latest comments on the Domestic Gold Purchase Programme support earlier warnings by the party regarding quasi-fiscal activities affecting the central bank’s balance sheet.

The party renewed calls for government to publish a transparent and time-bound recapitalisation plan for the Bank of Ghana, which it claims currently operates with negative net equity exceeding GH¢96 billion.

The opposition party further cautioned government against using any additional fiscal space expected from 2027 onward to finance politically motivated spending or accumulate off-budget liabilities ahead of future elections.

According to the NPP, any available fiscal headroom should instead be directed toward job creation, education, healthcare, infrastructure development and support for small businesses.

The statement concluded by arguing that despite improvements in headline economic indicators, many ordinary Ghanaians continue to face difficult living conditions.

The party pointed to rising youth unemployment, increasing utility tariffs, high rent costs and elevated food prices as evidence that many households are yet to feel the full benefits of the macroeconomic recovery being promoted by government.

The NPP pledged support for reforms aimed at protecting the long-term economic stability while promising to continue demanding transparency, accountability and prudent management of public resources.