Vice President of IMANI Africa, Bright Simons, has disclosed that under Ghana’s current arrangement with the International Monetary Fund (IMF), the Mahama administration is prohibited from issuing sovereign guarantees.
According to Mr Simons, the restriction forms part of the fiscal conditions attached to Ghana’s IMF-supported Extended Credit Facility (ECF) programme, which is aimed at restoring economic stability and strengthening public financial management.
Speaking in an interview with Channel One TV on Monday, January 5, he explained that the issuance of sovereign guarantees is not permitted under the programme’s standard framework. He noted that while exemptions may exist, the general rule under the IMF arrangement bars such commitments by government.
His comments follow the IMF Executive Board’s approval of the Fifth Review of Ghana’s ECF programme on Wednesday, December 17, 2025. The review acknowledged Ghana’s strong performance, citing efforts to stabilise the economy, improve fiscal discipline, and support recovery.
Completion of the review is expected to pave the way for the release of a sixth tranche of US$380 million to Ghana.
Mr Simons explained that restrictions such as the ban on sovereign guarantees are intended to curb excessive public spending and reinforce fiscal discipline. He stressed that these measures are necessary to ensure long-term economic stability and protect the country’s finances from unsustainable liabilities.
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