Finance Minister Dr. Cassiel Ato Forson announced a major turning point in Ghana’s economy declaring that the country has successfully concluded its final review of the International Monetary Fund (IMF) financial bailout program.
Addressing Parliament on Thursday, May 28, 2026, Dr. Forson revealed that Ghana will transition to a non-financing Policy Coordination Instrument (PCI), effectively ending its reliance on emergency foreign bailouts.
The Finance Minister framed the development as a realization of President John Mahama’s “Reset Agenda.”
He noted that the administration’s swift implementation of aggressive fiscal discipline brought the IMF-supported program back on track ahead of schedule after inheriting missed targets and fiscal indiscipline from the previous administration in late 2024.
“I come before this House to provide an update on the substantial progress we have made in restoring macroeconomic stability and debt sustainability ahead of the original timeline,” Dr. Forson told lawmakers.
“It signifies Ghana’s passage from crisis management to stability, from dependence on financial bailout to partnership in reform, and from uncertainty to renewed confidence in our economic future.”
Recalling the peak of the economic crisis in 2022, Dr. Forson painted a grim picture of the conditions ordinary citizens endured, including runaway inflation that soared past 50 percent, severe cedi depreciation, a historic default on external commercial debt obligations, and aggressive “haircuts” through the Domestic Debt Exchange Programme that hit pensioners and commercial banks alike.
To reverse the decline, the Mahama administration introduced several structural reforms, including cutting the number of ministers from 88 to 60, consolidating government ministries, removing nuisance taxes such as the E-Levy and Betting Tax, and instituting strict public financial management rules.
According to the Finance Minister, these interventions yielded dramatic, measurable shifts by the end of 2025.
Real GDP growth rebounded to 6.0 percent, and the non-oil sector expanded by 7.6 percent—the highest in 14 years. Crucially, Ghana’s economy crossed the $100 billion threshold for the first time in 2025, elevating the nation to the position of the eighth-largest economy in Africa.
The macroeconomic indicators presented to Parliament also showed that inflation plummeted from 23.8 percent in December 2024 to 3.4 percent in April 2026.
Simultaneously, the 91-Day Treasury Bill rate dropped sharply from 28.4 percent to 4.8 percent, while the local currency appreciated by over 40 percent against the US dollar across 2025. Public debt-to-GDP also saw a major reduction, falling from 61.8 percent to 44.7 percent, meeting national targets well ahead of the original 2034 timeline.
Dr. Forson emphasized that these gains paved the way for Ghana to shift its relationship with Washington from a “supplicant” to an equal partner.
Under the incoming PCI framework, Ghana will receive regular IMF policy assessments and external validation to maintain investor confidence without drawing down IMF loans.
“No further IMF financial bailout will be required in the foreseeable future,” Dr. Forson stated, echoing a commitment made by President Mahama earlier this year that this 17th IMF program must be Ghana’s absolute last. “In other words, Ghana has moved from the intensive-care unit to the wellness center.”
Looking forward, the Finance Minister announced that the administration has designed a new economic framework titled “The New Economy,” which will be officially unveiled in the 2027 budget statement. This next phase aims to transition the country from mere stabilization toward long-term structural transformation, job creation, and industrial resilience.
Expressing gratitude to the public, Dr. Forson concluded, “President Mahama is deeply grateful to Ghanaians for their sacrifice, patience, and steadfast forbearance. Our solemn pledge is that we will not be complacent; we will continue the hard work of building the Ghana we want.”
By:Rainbowradioonline.com/Ghana
