Ghana’s post-IMF programme options are widening beyond the ongoing discussions around the Policy Coordination Instrument (PCI), with government also weighing several alternative engagement frameworks as it prepares for its next phase of economic management.
JOYBUSINESS is learning that officials are considering the possibility of a successor Extended Credit Facility (ECF) arrangement.
This option is seen as a comprehensive continuation of IMF-supported engagement and is widely regarded as a strong credibility signal for PRGT-eligible low-income countries seeking sustained macroeconomic stability and investor confidence.
Another instrument under review is the Standby Credit Facility (SCF), which is a PRGT short- to medium-term financing tool designed for low-income countries facing non-protracted balance of payments challenges. The facility can be used on a precautionary basis, meaning approval is granted without immediate disbursement unless economic conditions worsen, effectively serving as an insurance mechanism without creating immediate repayment pressure.
Post-Programme Monitoring (PPM) is also expected to come into play automatically after Ghana’s current arrangement. The PPM framework applies to countries that have used IMF resources above 100 percent of their quota and maintain outstanding balances above 200 percent of quota. Given Ghana’s access of 304 percent of quota under the ECF, sources say the mechanism will be triggered upon programme completion. The process involves semi-annual IMF staff consultations that assess macroeconomic performance, financial stability, and risks to repayment capacity.
A “clean exit” option is also on the table. This would see Ghana complete the ECF programme without entering any successor arrangement, relying instead on annual Article IV consultations for IMF engagement. Such a path would represent a full graduation from the IMF’s Poverty Reduction and Growth Trust (PRGT) facilities.
However, JOYBUSINESS understands that the Policy Coordination Instrument (PCI) remains the leading option among the policy frameworks currently under consideration.
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Source: www.myjoyonline.com