Ghana is set to host an International Monetary Fund (IMF) staff mission for its 5th program review, commencing Monday, September 29. The review, which is the penultimate one, will assess Ghana’s performance under the IMF program following the successful completion of its 4th review earlier this year. The final review is scheduled for April 2026, ahead of the programme’s conclusion in May.

According to Joy Business, the review will be based on Ghana’s economic data up to June 2025. Key areas of discussion include inflation performance, sustainability of reserve build-up, audit of arrears, the recapitalisation needs of weak private sector banks, and state-owned banks such as NIB. This review has become necessary to alleviate fears among market analysts that Ghana may struggle to maintain fiscal discipline at the end of the programme.

Development partners have therefore urged Ghana to adopt measures that will help stabilize the economy after the IMF program ends in May 2026. Fiscal policy shortfalls, particularly in the context of an appreciated currency, will also be reviewed, with adjustments needed to achieve the 1.5% of GDP primary surplus target. Other issues include arrears in the NHIL, GETFund, and Road Fund, as well as shortfalls in social spending.

In July, the IMF announced that five banks, including the National Investment Bank (NIB), were struggling to meet their recapitalisation requirements. This was revealed in the IMF’s July 2025 Country Report, which presented details of Ghana’s Fourth Review under the Extended Credit Facility. The report also included assessments of Ghana’s banking sector, fiscal performance, and debt sustainability.

“…a few banks (including one state-owned) are materially behind on their recapitalisation schedule due to slow progress against shareholder capital commitments, higher NPLs, and/or delayed booking of credit impairments and required provisioning identified under the BoG’s 2023 asset quality assessments," parts of the report revealed.

Recapitalisation requirements refer to the minimum amount of money (capital) a bank must maintain to remain financially stable and avoid collapse even when incurring losses. The report further noted that banks still struggling with recapitalisation requirements are under intensified monitoring by the Bank of Ghana (BoG) and subject to corrective measures aimed at accelerating their recapitalisation plans to achieve a Capital Adequacy Ratio (CAR) of 13% by the end of March 2025.

"Parliamentary approval and implementation of the World Bank-funded segment of the GFSF could help some banks achieve CAR targets by end-2025, provided that they secure capital injections sufficient to reach capital levels eligible for access," the Fund projected.

The IMF further emphasized that "stepped-up efforts to improve the crisis management and resolution framework, enhance financial-sector safety nets, and address legacy issues at the specialised deposit-taking institutions are also important.”

According to the reports, about 13 banks that faced capital deficits following the Domestic Debt Exchange Programme (DDEP) introduced by the previous government have now met their requirements, with some even exceeding their recapitalisation thresholds as of the end of 2024.

The IMF noted that these banks are performing well and remain on track due to increased profits and support from the Ghana Financial Stability Fund (GFSF), which was set up in August 2023 under the Akufo-Addo-led administration to assist financial institutions impacted by the DDEP.

It also added that these banks are likely to reach the required safety level of 13% CAR on their own without additional support by the end of 2025.

“The Bank of Ghana has implemented risk containment measures to support banking system stability. It appropriately intensified monitoring and escalated measures at weak, undercapitalised banks to promote timely recapitalisation. The Ghana Financial Stability Fund (GFSF), established in August 2023, has provided targeted support to banks, contributing to improved profitability and recapitalisation progress,” the report noted.

The IMF further stated that the government is working to support struggling banks as part of efforts to strengthen financial stability.

“The authorities have taken intensified actions to address undercapitalised banks. Looking ahead, further strengthening financial sector stability requires fully implementing the plan to strengthen NIB, finalising the reform strategy to support state-owned banks’ viability and sustainability, and developing contingency plans to address weak banks that fail to recapitalise," the report stated.

Earlier reports indicated that 15 out of 21 banks had recorded losses due to the Domestic Debt Exchange Programme.

Finance Minister Dr. Cassiel Ato Forson has since announced the government’s decision to recapitalise the National Investment Bank (NIB), Agricultural Development Bank (ADB), and Consolidated Bank Ghana Limited (CBG).

Full details of this comprehensive recapitalisation plan will be unveiled during the upcoming mid-year review, Dr. Forson noted in a post on X on July 9.

In May last year, the previous government earmarked GH¢2.3 billion for the recapitalisation of the National Investment Bank (NIB).

"As part of the implementation of the Post Covid-19 Programme for Economic Growth (PC-PEG), Cabinet has approved the plan for restructuring and recapitalisation of the National Investment Bank (NIB)," the former Finance Minister Dr. Mohammed Amin Adam said.

The recapitalisation plan involved a programmed equity injection of about GH¢2.3 billion over a year, with the first tranche of GH¢400 million expected to be transferred to NIB before the end of May last year. This initiative was considered critical to strengthening governance structures, enhancing operational efficiency, and improving risk management to ensure the financial viability of NIB.