The International Monetary Fund (IMF) is expected to review if Ghana has met the requirements for the fifth review of its loan and needs is eligible to receive financial assistance from the Monetary Fund.

The IMF began its fifth review of Ghana’s performance under the Fund Programme on September 29. Two weeks ago, the Mission led by Chief Dr. Ruben Atoyan arrived in Accra and engaged in discussions with the technical staff of the Ministry of Finance and the Bank of Ghana, as well as Members of Parliament.

One of the main topics the IMF discussed with the government is spending on building projects, as audit reports are currently not ready. There are still some unsettled bills from last year’s spending on building projects.

Additionally, the team discussed whether the Bank of Ghana’s recent interest rate cuts are sufficient now that inflation (price rises) has dropped sharply, as well as how Ghana is managing its foreign reserves and how they are being spent.

The review will assess economic data up to June 2025, with discussions focusing on inflation trends, reserve sustainability, arrears audits, weak private banks requiring recapitalisation, the state of state-owned banks, revenue shortfalls, arrears build-up in statutory funds, and gaps in social spending.

This will be the IMF’s last but one review before Ghana’s programme with the global lender ends in May 2026, following the final review, which is slated for April 2026.

Experts say this review is very important because Ghana might have trouble keeping its finances under control once the IMF program ends.

Some donor partners are therefore pushing for “shock absorbers” to ensure stability beyond the IMF exit.

Government, however, insists there is no cause for concern, maintaining that measures are already in place to ensure disciplined expenditure after the programme.

If Ghana passes this review, the country is expected to receive about $360 million in October 2025, bringing total disbursements so far to about $2.3 billion since the programme began.

The IMF Executive Board approved Ghana’s $3 billion Extended Credit Facility in May 2023. The programme aims to restore fiscal sustainability through revenue mobilisation and efficient spending, protect the vulnerable, implement structural reforms in tax and energy, and preserve financial stability.

It also seeks to curb inflation, rebuild reserves under a flexible exchange rate regime, and create conditions for private investment, growth, and job creation.

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 emphasised 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.